EU's Kallas Says US Should Put More Pressure on Russia to End War
Summary
- The EU is facing internal friction (Hungary/Slovakia vetoes) regarding the €90 billion Ukraine loan and the 20th sanctions package.
- US-EU trade relations are deteriorating, with Kallas noting that "predictability is gone" and tariffs (specifically a 10% figure) are re-emerging, creating instability for European companies.
- There is a structural shift toward "Made in Europe" defense procurement, as the EU realizes it must build its own industrial base independent of external supply chains.
- If the €90 billion loan fails due to vetoes, the seizure of frozen Russian assets is explicitly "back on the table" to fund Ukraine by April.
Trade Ideas
Kaja Kallas
High Representative of the EU for Foreign Affairs and Security Policy
Kallas notes that "tariffs are now re-emerging" and specifically mentions confusion around a "10%" tariff. She explicitly says, "Predictability is a value now. It is it is again, gone." The European economy is heavily export-dependent. The re-introduction of US tariffs and the loss of trade predictability act as a direct tax on European corporate earnings and introduce a valuation discount due to uncertainty. AVOID broad European equities, particularly export-heavy indices like the DAX, until trade policy stabilizes. A sudden trade deal or exemption negotiation with the US could reverse negative sentiment.
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This Bloomberg Markets video, published February 24, 2026, features Kaja Kallas discussing EWG. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Kaja Kallas · Tickers: EWG