World
EU-Ukraine trade reset: What comes after tariff-free access expires?
Since 2022, trade between the EU and Ukraine has been governed by a temporary framework known as Autonomous Trade Measures (ATMs). Introduced after Russia’s full-scale invasion, the ATMs eliminated all tariffs and quotas on Ukrainian agricultural exports to the EU.
This offered a critical lifeline access to European markets for Ukrainian producers, especially for agricultural commodities such as grains, maize, eggs, and poultry, sustaining the country’s wartime economy.
However, the ATM scheme is due to expire on Thursday, and it cannot be renewed, having already been extended once.
Despite efforts since late 2024, the European Commission has failed to secure a permanent or improved replacement, leaving both Ukrainian exporters and EU policymakers scrambling.
This delay has frustrated several EU member states, many of whom had expected the Commission to secure a sustainable agreement with Ukraine ahead of the expiration deadline.
The political timing didn’t help: the Commission faced considerable pressure to avoid inflaming domestic tensions, particularly in Poland, where farmers have protested against the influx of Ukrainian imports.
With Poland’s presidential elections now behind, Brussels hopes negotiations for a longer-term trade framework can finally move forward.
Tariffs are reinstated
What happens when the tariff-free scheme expires? The most immediate consequence is the reintroduction of tariffs on Ukrainian agricultural goods.
In practical terms, this resets trade conditions between Ukraine and the EU to the situation before Russia’s 2022 invasion, with tariff lines and quotas from the pre-ATM era reinstated.
According to Ukrainian officials, this could cost the country over €3 billion annually in lost export revenue.
Because the year is nearly half over, quota limits will be applied on a seven-twelfths basis for the remainder of 2025, proportionally reflecting the reduced time window.
The impact will be significant. In 2024, nearly 60% of Ukraine’s total exports went to the EU, up from just over 39% in 2021, before the ATMs came into force.
The free access to EU markets has been a pillar of Ukraine’s economic resilience during wartime, helping to stabilise currency flows and sustain public funding.
This will have consequences for Ukraine’s war effort too
The loss of preferential market access is not merely an economic inconvenience: it could have direct consequences for Ukraine’s ability to fund its war effort.
Vitalii Koval, Ukraine’s minister of agrarian policy and food, highlighted during a recent visit to Brussels that agriculture represents a much larger share of Ukraine’s economy than it does in the EU.
One in five Ukrainians works in the agricultural sector, and its performance directly influences national revenues.
Ukrainian MP Yevheniia Kravchuk warned that failure to secure even a partial solution could result in a 1% drop in GDP, further straining the country’s wartime finances.
“Ukrainian companies have shifted their markets toward the EU. If exports decrease, tax revenues drop, those same taxes that fund our military,” she told Euronews.
The reintroduction of tariffs is also expected to suppress producer prices, increase market uncertainty and discourage private investment, hampering both recovery and reconstruction efforts in the longer term.
A stopgap while a new deal is negotiated
To avoid a sudden rupture in trade flows, the European Commission has prepared transitional measures to apply after the expiration of the ATMs. These were quietly approved two weeks ago by EU ambassadors as a precautionary step, though full details have yet to be published.
A European Commission spokesperson described the transitional measures as a “bridge” to allow time for a more comprehensive review of the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA), which is the long-term trade agreement underpinning relations before the ATMs.
Crucially, the Commission has stated that future trade will be based on the DCFTA, not an extension of the emergency ATMs.
This marks a clear shift, disappointing Ukrainian hopes of maintaining the same level of market access they enjoyed under the tariff-free regime.
Negotiations toward a revised DCFTA began formally with a meeting in Brussels on Monday afternoon. While details remain scarce, a Commission spokesperson said more clarity is expected “in the coming days”.
Earlier that day, EU ambassadors met to reaffirm the importance of establishing long-term, predictable trade relations with Ukraine, while also ensuring protections for European farmers, a politically sensitive group in several member states.
“It is an extremely important decision to be taken,” said MP Kravchuk. “When I hear that, since the full-scale invasion, the EU has spent more on Russian gas and oil than on aid to Ukraine—and now we are talking about cutting economic access meaning that Ukraine’s economy in the times of war will be shrinking—then it’s a questionable position, rather than a partnership one.”
Trump warns Iran it ‘can’t blackmail’ US with Hormuz closure
Fox News reports on heightened tensions in the Middle East as Iran’s Revolutionary Guard reaffirms strict control over the Strait of Hormuz and fires on passing ships. President Donald Trump, speaking from the Oval Office, states the US naval blockade will remain in full force. White House correspondent Alex Hogan provides updates on the escalating diplomatic and military standoff.
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Hundreds of commercial tankers are stranded on both sides of the Strait of Hormuz after Iran shut the critical chokepoint on April 18, halting traffic and leaving crews trapped amid reports of gunfire and “traumatic experiences” on board.
The Strait of Hormuz is considered an international waterway under international law, through which ships have the right of transit passage, according to the United Nations Convention on the Law of the Sea (UNCLOS).
Roughly one-fifth of the world’s oil supply passes through the Strait of Hormuz, making it a critical chokepoint for global energy markets, according to the U.S. Energy Information Administration.
The U.K. Maritime Trade Operations (UKMTO) said Iranian gunboats opened fire on a tanker the same day, while a projectile struck a container vessel, damaging cargo.
STARMER AND MACRON ACCUSED OF ‘PLAYING AT BEING RELEVANT’ WITH STRAIT OF HORMUZ PLAN
U.S. Central Command said Tuesday that “U.S. Navy guided-missile destroyers are among the assets executing a blockade mission impacting Iranian ports.” (CENTCOM)
Audio released by maritime monitoring group TankerTrackers appears to capture the moment a vessel and its crew came under fire while approaching the strait, including a distress call from a crew member.
“Sepah Navy! Motor tanker Sanmar Herald! You gave me clearance to go… you are firing now. Let me turn back!” the crew member can be heard saying in the recording, according to TankerTrackers.
Iranian state media confirmed that shots were fired near vessels to force them to turn back, while the Ministry of External Affairs of the Government of India said the foreign secretary was deeply concerned.
Hapag-Lloyd, the world’s fifth-largest container shipping line, told Fox News Digital that it had activated a crisis team as its crews remain stuck on board vessels in the region.
“We have been working from Friday afternoon until today with the entire crisis team to bring the vessels out — in vain, unfortunately,” said Nils Haupt, senior director of group communications at Hapag-Lloyd AG.
“These events can easily lead to traumatic experiences. There is also a significant risk from sea mines, which has made insuring vessels for passage through the Strait nearly impossible.”
LISA DAFTARI: HORMUZ WHIPLASH PROVES TEHRAN CAN’T HONOR ANY DEAL IT SIGNS
“The crews are well, but they are becoming increasingly impatient and frustrated. It is very unfortunate that we could not leave today,” he added. “Many ships are still stuck in the Persian Gulf.”
“Our six ships are anchored near the port of Dubai, and all crews hope for an improvement in the situation,” Haupt said.
The Islamic Revolutionary Guard Corps (IRGC) said on April 18 that the strait would remain closed until the U.S. lifts its blockade on Iranian ports, warning ships not to move from anchorage or risk being treated as “enemy” collaborators.
Iran has previously argued that restrictions on its oil exports and shipping amount to “economic warfare,” framing actions in the Strait of Hormuz as a response to foreign pressure on its economy, according to statements from Iranian officials and state media in past incidents.
“Approaching the Strait of Hormuz will be considered cooperation with the enemy, and any violating vessel will be targeted,” the IRGC said in a statement carried by the semi-official Tasnim News Agency.
TRUMP ORDERS A BLOCKADE IN THE STRAIT OF HORMUZ AS TENSIONS WITH IRAN SOAR
Fishing boats dot the sea as cargo ships, in the background, sail through the Arabian Gulf toward the Strait of Hormuz off the United Arab Emirates, Friday, March 27, 2026. (AP Photo)
The United States imposed the blockade on Iranian ports to pressure Tehran to reopen the strait, with U.S. Central Command saying the measures are being enforced “impartially against all vessels.”
Hapag-Lloyd said its vessels have been stuck for weeks following the initial closure after the outbreak of war with Iran on Feb. 28.
“For us, it is critical that our vessels can pass through the strait soon,” Haupt said.
“We offer all crew members unlimited data so they can video call loved ones and access entertainment. Crews are strong, but after weeks on board there is growing monotony and frustration.”
“One crew experienced a fire on board from bomb fragments. Others have seen missiles or drones near their vessels,” he added.
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“They are resilient, but each additional day makes the situation more difficult, more monotonous, and more stressful.”
President Donald Trump said Iran had agreed not to close the strait again but after the closure, Trump called the situation “blackmail” and said the U.S. would not back down.
Shops and schools shut in northern Israel as residents protested a 10-day ceasefire with Lebanon that took effect on April 16, saying “nothing was achieved”. Israeli officials say operations may continue, with forces still deployed inside southern Lebanon.
Published On 19 Apr 2026
World
Pope Leo says remarks about world being ‘ravaged by a handful of tyrants’ were not aimed at Trump: report
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Pope Leo XIV said Saturday that remarks he made this week in which he said the “world is being ravaged by a handful of tyrants” were not directed at President Donald Trump, a report said.
The pope, speaking onboard a flight to Angola during his 10-day tour of Africa, said reporting about his comments “has not been accurate in all its aspects” and his speech “was prepared two weeks ago, well before the president ever commented on myself and on the message of peace that I am promoting,” according to Reuters.
The news outlet cited the pope as saying his comments were not aimed at Trump.
“As it happens, it was looked at as if I was trying to debate the president, which is not in my interest at all,” the pope reportedly said.
’60 MINUTES’ ACCUSED OF USING LEFT-LEANING CARDINALS TO BAIT TRUMP INTO FEUD WITH VATICAN
Pope Leo XIV answers journalists’ questions during his flight from Yaoundé, Cameroon, to Luanda, Angola, Saturday, April 18, 2026. (Luca Zennaro/Pool Photo via AP)
Vice President JD Vance later took to X to thank the pope for clearing the record.
“While the media narrative constantly gins up conflict — and yes, real disagreements have happened and will happen — the reality is often much more complicated,” Vance wrote. “Pope Leo preaches the gospel, as he should, and that will inevitably mean he offers his opinions on the moral issues of the day.
“The President — and the entire administration — work to apply those moral principles in a messy world,” he continued. “He will be in our prayers, and I hope that we’ll be in his.”
The vice president’s comments came days after he told Fox News’ Bret Baier on “Special Report” that it would be best for the Vatican to “stick to matters of morality.”
“Let the President of the United States stick to dictating American public policy,” Vance said Tuesday.
Trump last Sunday accused Pope Leo XIV of being “terrible” on foreign policy after the pontiff criticized the U.S.-Israeli war on Iran.
“He talks about ‘fear’ of the Trump Administration, but doesn’t mention the FEAR that the Catholic Church, and all other Christian Organizations, had during COVID when they were arresting priests, ministers, and everybody else, for holding Church Services, even when going outside, and being ten and even twenty feet apart,” Trump wrote in a Truth Social post.
“I don’t want a Pope who thinks it’s OK for Iran to have a Nuclear Weapon.”
POPE LEO SLAMS THOSE WHO ‘MANIPULATE RELIGION’ FOR MILITARY OR POLITICAL GAIN, TRUMP RESPONDS
Pope Leo XIV and President Donald Trump (Simone Risoluti/Vatican Media via Vatican Pool/Getty Images; Salwan Georges/Bloomberg via Getty Images)
During a speech in Cameroon on Thursday, the pope said, “We must make a decisive change of course — a true conversion — that will lead us in the opposite direction, onto a sustainable path rich in human fraternity.
“The world is being ravaged by a handful of tyrants, yet it is held together by a multitude of supportive brothers and sisters.
Pope Leo XIV speaks as he meets with the community of Bamenda at Saint Joseph’s Cathedral in Bamenda on the fourth day of an 11-day apostolic journey to Africa April 16, 2026. (Alberto Pizzoli/AFP via Getty Images)
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“Woe to those who manipulate religion and the very name of God for their own military, economic or political gain, dragging that which is sacred into darkness and filth.”
Fox News Digital has reached out to the White House for comment.
Fox News Digital’s Landon Mion contributed to this report.
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