Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

European companies, from carmakers and brewers to airlines, have sounded a warning that US President Donald Trump’s import tariffs are beginning to wreak havoc on their businesses. For some — like German carmaker Porsche — the levies are squeezing margins, weighing on sales and prompting often costly efforts to shift production to America. For nearly all, uncertainty around the eventual level of duties is making effective planning next to impossible. Much of that concern will remain even after Trump signed a pair of directives yesterday easing the impact of his tariffs on the auto sector. But where there’s stress, there’s opportunity, and China’s Xi Jinping is seizing it. His diplomats are fanning out across the world with a clear message for countries trying to cut deals with Trump: The US is a bully that can’t be trusted.

— John Ainger

Editorial Note: The Brussels Edition will take a one-day pause over the May 1 public holiday and will resume on Friday, May 2.

What’s Happening

Tax Talks | US Treasury Secretary Scott Bessent said the EU has some “internal matters” to sort out before it can enter into trade talks with the US, highlighting a tax on digital services levied by some countries. The EU’s commissioner for international partnerships told us that the bloc has made tangible offers to Trump’s administration in an effort to restore stability to the global economy.

Land Grab | President Vladimir Putin insists that Russia take control of four regions of Ukraine it doesn’t fully occupy as part of any agreement to end his war, we’re told. The demand is a blow to Trump’s efforts to end to the conflict.

Five Seconds | At 12:33 p.m. Madrid time on Monday, the Spanish power grid was running smoothly. But in the following few seconds, a series of mysterious events caused the worst blackout in the country’s recent history. Here’s what we know so far.

Golden Visas | Malta’s “golden passports” program for the rich violates citizenship rules, according to the EU’s top court. The ruling comes after the US rolled out its own initiative to entice the wealthy — dubbed the “Trump Gold Card.”

Shadow Sellers | The EU should follow the UK in cutting disclosure requirements on short sellers, an industry lobby organization said. Current rules require that the identities of investors holding short positions of 0.5% or more in a company be disclosed. That allows other market participants to copy their investment strategy on the cheap, they argue.

Around Europe

Red Tape | Several top ECB officials are seeking to narrow the remit of its powerful banking supervision arm to reduce red tape for the bloc’s lenders, we’ve learned. A meaningful reduction in the number of banks directly overseen would mark the biggest curb of its task force since it was created over a decade ago.

Package Problem | France is pushing to slap fees on small packages from discount retailers including China’s Temu as the flood of cheap goods risks accelerating in response to US tariffs. The stopgap measure would come before a wider European overhaul of customs fees that’s slated to take effect in 2028.

Gas Link | Outgoing German Foreign Minister Annalena Baerbock said the disputed Nord Stream gas pipeline shouldn’t be reactivated, amid suggestions that renewed deliveries from Russia could be tied to a ceasefire deal in Ukraine. Here’s what’s at stake.

Dwindling Trust | Fewer Finns have faith in NATO’s security guarantees after Trump cast doubt on whether the US would unconditionally defend allies in the event of an attack, according to a poll. It marks a steep drop in belief in the deterrence provided by the military alliance it joined in 2023.

Arctic Grab | A parcel of private land on Norway’s Arctic archipelago of Svalbard has attracted a group of buyers that is willing to fork out the €300 million asking price — if the Norwegian government doesn’t block the deal. Who’s interested?

Chart of the Day

Russia’s full-scale assault on Ukraine exposed how Swiss neutrality imposes strict export rules for arms, threatening the small but symbolically important industry. Bern was criticized for blocking shipments of Swiss-made weapons to Ukraine, and now Switzerland risks missing out on lucrative contracts as European nations rearm in the face of Moscow’s aggression and tensions with the US.

Today’s Agenda

All times CET

• 10:30 a.m. German Social Democrats announce result of online membership vote on coalition deal with Friedrich Merz’s conservatives
• European Commission Executive Vice President Teresa Ribera speaks at Global Competition Law Center conference
• European People’s Party congress concludes in Valencia, Spain
• French President Emmanuel Macron hosts outgoing German Chancellor Olaf Scholz for a farewell dinner in Paris