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Analysis: Trump’s policies set to widen EU-US innovation gap

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Analysis: Trump’s policies set to widen EU-US innovation gap

As the curtain falls on 2025, policymakers in Brussels have yet to decisively counter the negative economic impacts of two major developments: the trade deal struck between the European Union and the United States this summer, and President Trump’s so-called “Big Beautiful Bill”, a mammoth piece of domestic legislation with global economic implications.

The EU’s slow progress toward improving relative business conditions at such a volatile moment has left investors frustrated and looking elsewhere.

According to a report published this week by the European Round Table for Industry, the leaders of the bloc’s industrial giants are “alarmed at the lack of urgency in delivering on Draghi and Letta’s bold reforms to restore the business case for investing in Europe.”

The report also points to a survey of CEOs conducted in October, which shows that only 55% expect to stick to their investment plans. Even worse, a mere 8% intend to invest more in Europe than they planned to six months prior, in contrast with the 38% who will either invest less than previously intended or have put decisions on hold.

And most tellingly, the US now attracts more investment than originally planned by 45% of respondents.

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The ‘carrot-and-stick’ approach

The Trump administration’s combination of supply-side economics and protectionism has converted the necessity of avoiding US tariffs into a massive financial incentive for foreign companies and multinationals to invest in the United States directly.

The Big Beautiful Bill, which Trump signed into law in July, formalised huge tax breaks and effectively guaranteed incentives to shift investments across the Atlantic. Namely, the 100% bonus depreciation for new machinery and factories, as well as the 100% immediate expensing of domestic research and development (R&D) costs, mitigating the expenses of moving production and innovation to the US.

Companies have until 1 January 2026 to finalize their decisions and collect retroactive benefits for capital deployed in 2025, but the conditions will remain the same next year.

To compound the EU’s growing inability to compete, the heavily criticised EU-US trade deal was agreed in the same month. The agreement de-escalated the transatlantic trade war of 2025 but it levied a 15% tariff on the vast majority of the EU’s industrial exports to the US, with an exemption from duties for most US-made goods bound for the EU market.

In addition, the EU committed to spending over €640 billion in US energy, investing more than €500 billion in the US economy and buying around €35 billion worth of US-made AI chips, until the end of President Trump’s mandate. Meanwhile, the United States made no similar pledges.

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As for corporations, the choice became simple: relocate investment to the US, avoid the tariff and claim massive tax deductions.

The innovation gap in numbers

The R&D siphon is the most critical threat to Europe’s future competitiveness, as the Trump administration’s new incentives pull core innovation to the US.

In the most innovative industries, such as the AI and healthcare sectors, the numbers for 2025 already demonstrate the chasm between the EU and the US.

In the first three quarters of this year, private investment flowing into US AI companies exceeded €100 billion, with the US capturing over 80% of global AI funding. In contrast, the entire EU attracted just shy of €7 billion, according to the widely read State of AI Report 2025.

This severe 15-to-1 funding deficit means the technological future is being built and scaled primarily outside the EU, something that has been recognised by the European Parliament.

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Likewise, the EU is aiming to achieve 20% market share in semiconductor manufacturing by 2030, as outlined in the Chips Act, but experts say such a goal is unlikely given that Europe is among the slowest growers in the sector year-on-year.

Furthermore, the EU is even falling behind on AI adoption among young users, according to a new survey by the Organisation for Economic Cooperation and Development.

As for the pharmaceutical industry, CEOs sent a stark warning to President von der Leyen back in April that “unless Europe delivers rapid, radical policy change then pharmaceutical research, development and manufacturing is increasingly likely to be directed towards the US.”

In the following weeks, fuelled by the fear of the ongoing transatlantic trade war at the time and frustration with the European regulatory scene, the third largest company in Europe by market capitalization, the Swiss-based Roche, committed over €40 billion in US investment over the next five years. Likewise, the French multinational Sanofi announced an investment of €17 billion to expand manufacturing in the US through 2030.

In July, as the Big Beautiful Bill and the EU-US trade deal were being agreed, the British-Swedish company AstraZeneca also declared investing over €40 billion in the US over the next five years, including the construction of a chronic disease research centre in the state of Virginia, the company’s largest single investment in a facility to date.

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In November, the White House announced a large-scale agreement between two pharmaceutical rivals, the American manufacturer Eli Lilly, and the Danish corporation Novo Nordisk, known for pioneering the prescription drug for type 2 diabetes, Ozempic, which has also been widely used off-label for weight loss.

The two companies agreed a strategy to reduce the prices of several medications for Americans and announced new investments in the US, with Novo Nordisk committing roughly €8.5 billion to expand US manufacturing capacity. In exchange, the Danish company is expected to receive a three-year exemption from US tariffs, among other benefits.

In total, the European pharmaceutical industry has pledged more than €100 billion for US expansion in 2025 alone with multi-year commitments.

The scramble to deregulate

The pressure applied by the US is evident as this year has seen the European Commission pivot to an aggressive deregulation agenda.

In response to a request from the European Council, six simplification proposals, referred to as “omnibuses”, have been presented since February covering energy, finance, agriculture, technology, defence and chemicals.

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Notably, the so-called Digital Omnibus was introduced in November, and it includes delays to provisions of the AI Act and modifications to the GDPR.

These initiatives aim to rapidly cut red tape and reduce bureaucratic costs for European businesses in an attempt to stem the outflow of talent and capital. However, the proposed measures are still facing legislative scrutiny, as well as administrative oversight and political backlash from privacy and climate advocates, among others.

It was only this week that an agreement was finally reached on the first omnibus, another sign that the EU is still far from offering the immediate financial certainty of minimising or avoiding US tariffs while benefiting from President Trump’s policies where possible.

The numbers reveal the plain economic truth: while the EU debates the fine print of deregulation, the investment in innovation is already being decisively relocated.

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Scott Pelley Out at CBS News After Dramatic Clash With New ’60 Minutes’ Executive Producer

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Scott Pelley Out at CBS News After Dramatic Clash With New ’60 Minutes’ Executive Producer

And then there were three.

CBS News has terminated “60 Minutes” veteran Scott Pelley after the journalist and executives felt they could not find a way to work together following a heated public argument Monday between Pelley and Nick Bilton, the former tech journalist installed last week by editorial chief Bari Weiss. Pelley is the fourth “60 Minutes” reporter to leave the venerable newsmagazine since February, leaving just a trio — Lesley Stahl, Bill Whitaker and Jon Wertheim — to handle assignments as the show prepares to get stories ready for its 59th season in the fall.

“Your antipathy to the future of the show has come through loud and clear,” Bilton said in a letter sent to Pelley Tuesday evening and reviewed by Variety. “And I have heard you. I therefore write on behalf of CBS News to inform you that your employment with CBS is terminated effective immediately.”

Pelley could not be reached for immediate comment.

Pelley had lambasted both Bilton and Weiss during a staff meeting Monday, questioning their qualifications to manage a program like “60 Minutes,” which is one of the most respected and most watched news programs in the U.S. And he accused Weiss of “murdering ’60 Minutes.’”

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Weiss had indicated last week that she wanted the program “to reach new heights through deep, revelatory journalism that breaks news, exposes wrongdoing, widens public understanding and forces accountability from every institution and every center of power.” Increasingly, however, it is unclear who will be left to accomplish the mission.

CBS News ousted a good chunk of the program’s senior managers last week, including former executive producer Tanya Simon; executive editor Draggan Mihailovich; and correspondents Sharyn Alfonsi and Cecilia Vega. Anderson Cooper, who has contributed to the show for nearly 20 years, announced his exit in February.

In a memo to staff issued Tuesday evening, Bilton tried to assuage staffers. “I know how much Scott meant to you, and I don’t say this lightly. I made repeated attempts to have direct conversations with him over the weekend, and this afternoon I tried to find common ground. That was not the path Scott chose.”

Bilton said he would offer “unyielding support for each of you, the journalism that you do and what we will do together going forward.”

For many, Pelley was in recent years the heart of the newsmagazine. He had turned in segments on breaking political news as well as an emotional profile on former Senator Ben Sasse and a feature on underworld caverns in Vietnam. In 2021, Pelley presented a deeply reported three-part feature on the firefighters who tried to rescue people in the burning World Trade Center on September 11, 2001, culled from tapes of conversations made available by the Port Authority of New York and New Jersey.

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Indeed, Pelley has won half of all major awards earned by “60 Minutes” during his tenure, which began in 2004.

“I would not want to run ’60 Minutes’ without Scott. He mastered the art of telling a story on ’60 Minutes’ as well as any of the greats that came before him,” says Jeff Fager, who was the second executive producer of “60 Minutes” and a former chairman of CBS News, in a message sent via text. “He is a major talent and his departure is a huge blow to the program.”

Pelley has been known to viewers in other capacities. Pelley anchored “CBS Evening News” between 2011 and 2017. He joined CBS News in 1989, and started his career in journalism as a copy boy at the Lubbock Avalanche Journal in Texas, near his hometown of San Antonio.

“Journalism has nothing whatever to do with popularity. If we all do our jobs right, we’re probably not going to be very popular with a large segment of our audience. Hopefully, that changes day to day and everybody hears something they like eventually,” Pelley told Variety in 2017. “But, journalism has nothing to do with popularity and so therefore, criticism doesn’t bother me too much.”

Whether Bilton will be able to make longtime “60 Minutes” viewers forget about Pelley this fall remains to be seen.

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Iranians speak out over possible Trump-regime deal

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Iranians speak out over possible Trump-regime deal

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Amid President Donald Trump’s Monday announcement that a deal with Iran’s clerical regime is imminent to re-open the Strait of Hormuz and negotiate an end to Tehran’s illicit nuclear weapons program, Iranians who hoped U.S. pressure would force a decisive outcome now fear it may survive while ordinary people absorb the costs.

“Inside Iran, the mood has shifted from early-war optimism to a kind of exhausted resignation, but there is still some hope that this is the moment President Trump will use his leverage to do the right thing. The Iranian people understand this unusually narrow but strategic window,” Lisa Daftari, editor-in-chief of The Foreign Desk who keeps in contact with Iranians on the ground, told Fox News Digital.

She continued that ,”The regime is fiscally strained and politically brittle, while the broader population has been disillusioned by years of repression and economic collapse. Iranians do see this as a one‑time opportunity for Washington — and President Trump in particular — to translate military and economic leverage into the potential collapse of an irrefromable regime. If the outcome is a shallow agreement that props up the system without changing its trajectory, that window will likely close for years.”

TRUMP’S LEADERSHIP CREATES ‘RARE OPPORTUNITY’ FOR CHANGE IN IRAN, FORMER IRANIAN POLITICAL PRISONER SAYS

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An Iranian flag is placed amid rubble next to a destroyed residential building near Ferdowsi Square in Tehran on March 3, 2026. (ATTA KENARE / AFP via Getty Images)

She continued, “If instead, the U.S. holds firm on sanctions and nuclear red lines, it can weaken the regime’s hand without punishing the Iranian people, who have already paid the highest price.”

Daftari, the Iran expert, shared recent correspondence from two Iranians from Tabriz and Tehran.

The resident from Tabriz said, “From my perspective, decades of political tension between Iran and the United States have had their greatest impact on ordinary people rather than those in power. Many families feel their voices are not being heard in international discussions about Iran.” Adding, “I respectfully ask whether you might consider sharing or highlighting the human side of this situation, so that the experiences of ordinary Iranian families are not overlooked in political discussions and media coverage.”

The Tehran resident said, “Today, the people of Iran believe in the future. On days when economic pressure makes the faces of the Iranian people sad, the word ‘unity’ brings a smile to their lips. Our situation is not good, but we are motivated.”

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Fox News Digital surveyed a few Iranians and agreed to use only their first names because the clerical regime has declared the use of Starlink to bypass the censor a criminal act. A sophisticated clandestine network has managed to smuggle some satellite internet technology into Iran to allow people to communicate with the world outside the Islamist state.

Two armed members of Iran’s police special forces stand behind a country flag placed on an armored military vehicle during a pro-Government rally in downtown Tehran, Iran. (Morteza Nikoubazl/NurPhoto via Getty Images)

Hassan, who lives in Tehran, pleaded with President Trump to keep strong in his dealings with the regime, saying that “Things have gotten so bad that even if you wanted to give up and leave Iran and just focus on your own life and work, it feels like there’s nowhere left to turn. Mr. Trump, through these deals and arrangements, has left people feeling trapped, with no road left open.”

Mehdi, who resides in Tehran, expressed confusion about the existence of an agreement. He said, “So what exactly are they agreeing on? Are they saying they’re close to a deal or are there other discussions too? Every minute there is a new piece of news, everyone has a new analysis, everything changes every minute. It’s strange. This war achieved nothing. We’re the only ones left paying the price,” he complained.

THE WAR HITS HOME: WHY FINANCIAL PAIN AND ECONOMIC UNCERTAINTY THREATEN TRUMP’S DRIVE TO TOPPLE IRAN’S REGIME

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Hassan from Tehran said that “Mr. Trump, if until yesterday most Iranians thought they were on the same path as America, you caused them all to become disappointed. “Mr. Trump, if you wanted this government to remain in power, why did you blow up factories? Now workers are being laid off, and inflation is out of control. Even with a salary of 18 million tomans, you cannot feed yourself.”

Mahsa, from the Caspian Sea city of Rasht, told Fox News Digital that the system [Islamic Republic of Iran] is still fully intact. They don’t care how many people died. If anything, they seem more emboldened now and even take pride in martyrdom. Yesterday I argued with a regime supporter [who] said: “Our leader didn’t give away a single meter of land, didn’t take a step backward, unlike previous kings who gave away Bahrain, Baku, Nakhchivan, and others.”

Protesters block a street as a crowd gathers during a demonstration in Tehran, Iran, on Jan. 9, 2026. (Mahsa/Middle East Images/AFP)

The concerns among many Iranians revolve around the proposed memorandum of understanding between the U.S. and Iran’s regime. The MOU does not address the overthrow of the clerical regime or human rights violations, according to media reports.  Large numbers of Iranians within Iran and among the Iranian diaspora want the Trump administration to topple the Islamist dictatorship in Tehran.

The MOU reportedly involves a 60-day ceasefire extension. Israel and the U.S. launched a joint attack on Iran on February 28. The MOU would also see the reopening the Strait of Hormuz and new talks over Iran’s illicit nuclear weapons program.

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The leaked elements of the MOU have not been confirmed by the Trump administration.

When asked about the concern among Iranians about a deal with the Islamic Republic, Anna Kelly, a spokeswoman for the White House, told Fox News Digital that “For 47 years, American Presidents and countless other world leaders talked about the threat posed by Iran, but no one had the courage to address it. President Trump took decisive action to ensure that Iran could never harm our homeland, our troops, or our allies again. Once Iran’s nuclear threat is removed for good, the entire region and its people will be safer and more stable.”

IRAN REGIME ESCALATES REPRESSION TOWARD ‘NORTH KOREA-STYLE MODEL OF ISOLATION AND CONTROL’

Protesters march in downtown Tehran, Iran, on Dec. 29, 2025. (Fars News Agency/AP)

However, Trump said last week during his cabinet meeting, “We didn’t set out for regime change,” adding, “But by the fact that we’re dealing with a totally different group of people than we were at the beginning … This is regime change.”

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Reza Farnood, an Iranian American who supports the Trump administration and is a researcher, writer and activist, urged that President Trump continue with his maximum pressure campaign against Tehran.

Farnood told Fox News Digital, “We welcome the bombing and attacking the regime because we are aiming to overthrow the regime.” He urged that Trump continue the blockade of Iran’s vessels and deny money to the regime. He said sanctions relief will be used by Iran “against the U.S. and Israel and their allies and innocent Iranians.”

Farnood stressed that the clerical regime is holding the Iranian people “hostage.”

Kianoosh, who lives in the northern city of Karaj, the capital of  Alborz province, said about Trump’s proposed deal: “You threw six months of our lives into hell. What answer are “you going to give to the mothers of all those children who were killed? Why did you give people false hope? Why did you hand down a death sentence to everything so many people believed in?”

Leading U.S. Senators well-versed in foreign policy have praised Trump’s approach to the Islamic Republic. Sen. Lindsey Graham, R-SC., recently told Fox News’ Sean Hannity “On Trump’s watch, they’re [Iran’s regime] becoming poorer and weaker. That’s the difference.”

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TRUMP’S ‘ECONOMIC FURY’ SQUEEZES IRAN — BUT CAN TEHRAN OUTLAST THE PRESSURE?

Graham juxtaposed Trump’s Iran policy with his predecessors. “Obama and Biden screwed Iran up, and Donald Trump is fixing it. On Obama and Biden’s watch, Iran became rich and lethal,” he said. “On Trump’s watch, they’re becoming poorer and weaker. That’s the difference.”

Iran is running dangerously low on oil storage capacity and could face a severe economic breaking point if forced to halt production, former U.S. Energy Secretary Dan Brouillette recently told Fox News.

Trump has said that Iran’s regime murdered as many as 45,000 Iranian demonstrators in January 2026. He urged just days after the mass murder that protesters keep going and promised them that “help is on its way.”

Lawdan Bazargan, a prominent Iranian-American activist who the regime imprisoned in its infamous Evin Prison in Tehran in the 1980s for political dissent, told Fox News Digital that the Iranians she’s spoken with are discouraged by Trump’s dealings. “He was one of the few world leaders who repeatedly spoke about the thousands of Iranians killed in January 2026 and expressed disgust at the sheer brutality of the Islamic Republic. He had promised support for the Iranian people and raised expectations that meaningful change might finally come.”

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Iranians attend an anti-government protest in Tehran, Iran, on Jan. 9, 2026. (UGC via AP)

She continued: “Now, 88 days later, many people feel they are left facing the same regime, one that appears more emboldened, more ideological, and still willing to repress, execute, and arrest people. The economy has been devastated, and many feel trapped between a government with no mercy and a future with no clear path forward.

For years, 90 million Iranians have lived as hostages of the Islamic Republic. Now, many fear that the consequences no longer stop at Iran’s borders, through threats to global energy routes, regional stability, and even digital infrastructure.”

According to Bazargan, “The question many ordinary Iranians are asking is simple: How are people expected to fight a system that feels victorious, controls the weapons, controls the narrative through a massive propaganda machine, and possesses countless tools of repression?”

A billboard in Tehran displays Iran’s supreme leaders since 1979: Ayatollah Ruhollah Khomeini, Ayatollah Ali Khamenei, and Ayatollah Mojtaba Khamenei, who was appointed supreme leader on March 9, 2026. (AFP/Via Getty Images)

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Ali, who is also from the sprawling capital city of Tehran, complained about the spiraling prices and inflation and disappointment that the regime is still in place.

“For a government with state-provided housing and billions in patronage and privileges, what difference did any of this make for its supporters?”

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Ali added: “We’re the ones who are paying the price and getting crushed. How are our children ever supposed to afford these housing and car prices, and how are they supposed to get married?”

The U.S. State Department referred Fox News Digital to the White House for a comment.

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Mexico and Canada push to extend USMCA trade pact

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Mexico and Canada push to extend USMCA trade pact
NewsFeed

Mexico and Canada have backed extending the USMCA trade agreement for another 16 years as negotiations over its future continue. The proposal comes amid an ongoing trade dispute with the United States.

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