European political and economic tensions dominated headlines Tuesday, as President Donald Trump signaled strains in US-UK relations over Iran policy and Britain bolstered defenses in Cyprus following a drone strike.
The new “Made in EU” auto rules risk trade friction with China and key partners.
Meanwhile, Swiss sportswear brand On Holding posted record 2025 sales, though shares fell sharply premarket despite beating revenue and margin expectations.
Trump flags deteriorating US-UK relationship
US President Donald Trump said the relationship between Washington and London is “not what it was” after Britain initially declined to join US-led strikes against Iran.
In an interview with the Sun newspaper published on Tuesday, Trump called it “very sad to see” the state of ties with what was once regarded as America’s most dependable ally, and said France had been more supportive.
Trump’s remarks followed Prime Minister Keir Starmer’s decision to withhold British participation in the first wave of strikes, before later allowing the United States to use UK bases for defensive operations.
Trump insisted the US did not need British help to wage war in the Middle East but argued Starmer “should have helped”.
Britain deploys a destroyer to counter drone strikes
Britain is weighing the deployment of a warship to protect its Royal Air Force base at Akrotiri in Cyprus following an Iranian drone strike.
Defence Minister John Healey met senior military officials to discuss sending HMS Duncan to the eastern Mediterranean amid escalating threats from Iran.
An Iranian-made drone hit a runway at the base early Monday, causing limited damage with no casualties reported.
The UK has bolstered defenses there, including radar and F-35 jets, while moving some families to safer spots as a precaution.
EU’s new auto regulations risk backlash
The European Union is set to roll out “Made in EU” rules for its auto sector on Wednesday, aiming to revive local manufacturing amid Chinese EV competition.
Under the proposed Industrial Accelerator Act, electric vehicles would need 70% of parts costs (excluding batteries) made in the bloc to qualify for subsidies, with minimum EU content required for battery packs too.
France pushes hard for protectionism to save jobs, as small suppliers have lost half their workforce since 2007.
Germany worries about backlash, especially from China, where it sells a quarter of its cars, fearing a trade war like recent EU tariffs on Chinese EVs.
Automakers like Ford and Jaguar Land Rover, reliant on UK and Turkey supply chains, lobby for inclusion of “trusted partners” beyond the EEA.
Excluding them risks loopholes or weakened production, suppliers warn.
On posts record 2025 sales
Swiss sneaker brand On Holding posted record results for 2025, with full-year net sales topping 3 billion Swiss francs for the first time.
Q4 revenue hit 743.8 million francs, up 22.6% reported and 30.6% at constant currency, beating estimates of 723.5 million.
Gross margin reached a quarterly high of 63.9%, while adjusted EBITDA margin climbed to 18.8% for the year.
DTC sales grew 21.7% to 360.6 million francs, making up 41.8% of total Q4 revenue, as brand awareness neared 30% globally.
Wholesale rose 23.4% to 383.2 million francs. Americas led growth at 21.3% constant currency, followed by strong Asia-Pacific gains.
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