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

Europe is lagging behind Asian countries in efforts to open up talks with Washington over avoiding President Donald Trump’s tariffs before a 90-day grace period expires in early July. EU officials came away from initial discussions with the US convinced that there’s no negotiating away the 10% levy — and that the Trump administration may double it to the so-called reciprocal level of 20% if there’s no progress in talks. Switzerland jumped onto a fast track as one of 15 countries that will get “somewhat preferential treatment,” after agreeing to tariff negotiations with the US. For Europe, the biggest struggle remains getting a foot in the door with senior US officials to sort out what, exactly, Trump is looking for in a deal. 

— Kevin Whitelaw

What’s Happening

Fresh Tone | Ukrainian President Volodymyr Zelenskiy said he wants a “reliable and lasting peace” after his meeting with Trump. Earlier, the US president had questioned whether Russia’s Vladimir Putin genuinely wants to end the war in Ukraine. Trump and Zelenskiy had a short meeting just before the funeral for Pope Francis as they tried to move past their contentious February Oval Office spat.

Shun China | As Donald Trump Jr. made a swing through eastern Europe, he said Hungary and the region should pick the US over China as its economic partner. Despite the natural political sympathies between Trump allies and Hungarian leaders, that call is likely to sit uncomfortably in Budapest, which has opened its economy to investments from Beijing. 

AI Rulebook | The Trump administration is pressing Europe to dial back its plans to regulate artificial intelligence. The US mission to the EU wrote the commission in recent weeks to push back against the bloc’s planned voluntary AI code of practice.

Rules Fight | The ECB is making a new push to simplify banking regulation as part of a broader effort to boost competitiveness. The central bank governors of Germany, France and Italy are among the key figures in a newly convened task force, we’re told, but the plan risks stoking internal tensions with the ECB’s supervisory arm, which sees itself as the defender of the bloc’s high regulatory standards.

Around Europe

Defense Investors | Private equity firms are scouring for investment opportunities in European defense, chasing the once-shunned sector in an effort to benefit from a historic switch to military expansion. The moves reflect what leading defense executives call a paradigm shift US. 

College Scrutiny | Universities in countries like Switzerland and Germany are facing fresh scrutiny from the Trump administration over issues like diversity. That could make things complicated for schools in Europe, which have largely tried to maintain their DEI programs and stay neutral when it comes to issues like Israel’s military operations in Gaza. 

Accepting Change | The IMF said that Europe needs to be mindful in how it tries to mitigate the fallout from Trump’s tariff war. “Europe should protect people, but we have to be cautious not to stand in the way of inevitable structural change,” said Alfred Kammer, director of the institution’s European department.

Another Deferral | A Serbian refiner controlled By Russia’s Gazprom won another reprieve from US sanctions, which have been postponed until June, President  Aleksandar Vucic said. The US imposed sanctions in January, but the latest deferral marks the third time the penalties have been postponed, following pleas by Vucic.

Chart of the Day

S&P Global Ratings put a negative outlook on its assessment of Belgium’s creditworthiness over concerns about its budget deficits. The change in outlook reflects “risks around Belgium’s budgetary consolidation, given the already high levels of government debt,” the ratings firm said.

Today’s Agenda

All times CET

• 2:45 p.m. NATO holds event to mark 70th anniversary of Germany’s accession to the alliance
• 4:10 p.m. Council President Antonio Costa holds news conference with Bulgarian Prime Minister Rossen Jeliazkov
• EU competition chief Ribera speaks in European Parliament's internal market committee