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

The EU’s bold move to lay out its plans to retaliate against US tariffs on the very day President Donald Trump unveiled a trade deal with the UK could have easily gone awry. Instead, the plan elicited almost no reaction from Washington. The bloc’s proposed measures would target key industrial goods, including Boeing aircraft, US-made cars and bourbon whiskey. At a press event announcing the accord with London, Trump struck a conciliatory tone toward Brussels, saying that “everybody wants to make a deal with the United States” and that he’d like to meet with Ursula von der Leyen, calling the Commission president “fantastic.”

— Gian Volpicelli

What’s Happening

War Tribunal | Ukraine and the EU will today announce a new court to prosecute Russian officials for the full-scale invasion of Ukraine in February 2022. The bloc’s top diplomat, Kaja Kallas, said the special tribunal will ensure that “there will be no impunity.”

Frozen Assets | Lithuania is pleading with Germany’s new chancellor, Friedrich Merz, to back a proposal to seize frozen Russian central bank assets in order to fund support for Ukraine. The EU is already using the profits generated by the assets to finance assistance for the government in Kyiv, but is loath to seize them outright, fearing that such a step would undermine the euro’s international standing.

Warning Words | The ECB’s leadership was provided with an in-depth analysis of the risks posed by potential Russian military aggression in eastern Europe before its most-recent rate-setting meeting, sources say. The Governing Council’s gathering on April 16-17 opened with a presentation of scenarios looking at how such an attack on the EU might materialize within four years.

French Resistance | France called on the EU to dial back a draft law bolstering protection for retail investors, saying it would be too onerous for asset managers and drive away clients. The reaction comes amid a growing backlash from companies and governments against what they see as excessive red tape hurting competitiveness.

Around Europe

American Pope | Cardinal Robert Francis Prevost was elected as Roman Catholic pontiff, the first pope from the US. The 69-year-old, who chose the name of Leo XIV, is seen as having a good chance of establishing strong relations with Trump, despite his reputation as an intellectual and his track record working for social justice.

Romanian Jitters | Romania’s central bank said it intervened yesterday to protect the country’s currency from upheaval following the government’s collapse this week. The leu began to stabilize after hitting a record low and short-term yields spiked, as the Black Sea nation seeks to stem its biggest market selloff since the global financial crisis.

Deal Approved | Ukraine’s parliament ratified a deal with the US over access to the country’s natural resources, lending full support to attempts by President Volodymyr Zelenskiy to improve ties with Washington. Ukraine and the US reached the accord a week ago after long negotiations that led the US to drop its insistence on getting back billions of dollars in aid delivered to Kyiv.

Xi’s Parade | Russia President Vladimir Putin and his Chinese counterpart Xi Jinping met in Moscow, reinforcing the alliance between their countries as they seek to upend the US-led world order. In a joint statement, Moscow and Beijing warned that “a critical mass of problems and challenges has accumulated in the strategic sphere, and the risk of nuclear conflict has increased.”

Chart of the Day

Electric vehicles from China are losing momentum in Europe, but the nation’s automakers are selling more cars than ever in the region by throttling up deliveries of hybrids and combustion-engine models. The number of Chinese-brand cars registered across Europe hit record levels in the first three months of the year, exceeding 150,000 vehicles, and the monthly total hit an all-time high in March.

Today’s Agenda

All times CET

• 9:45 a.m. EU Council President Antonio Costa joint press conference with German Chancellor Friedrich Merz in Brussels.
• 11:30 a.m. Commission President von der Leyen joint press conference with Merz.
• 1:30 p.m. NATO Secretary General Mark Rutte joint press conference with Merz.