EU Policy

Published on 28/11/2025 – 17:03 GMT+1
•Updated
17:16

The EU member states agreed on Friday to cut tariffs on US imports as outlined in a controversial trade deal agreed last summer between the European Commission and the Trump administration to the detriment of European goods.

The move comes as US trade representatives urge EU capitals to fast-track the implementation of the deal which foresees the EU dropping tariffs to zero on most US industrial goods. A US delegation visited Brussels this week for talks.

The idea of adding a so-called “sunset clause” – a mechanism that would end the tariff concessions after a period of five years if the deal is not renewed – sparked a debate among EU countries but did not go ahead, signalling that member states do not want to antagonise Trump.

The EU-US trade agreement was concluded in July after months of tensions after US President Donald Trump imposed sweeping tariffs on partners worldwide in what he called “Liberation Day” for America. Under the deal, the EU will pay 15% tariffs on its exports to the US, while reducing its own tariffs on most US industrial products to zero.

No ‘sunset clause’ yet, but the Parliament could fight it

The deal has been widely criticised as a humiliation for Europe, although the Commission has defended it since arguing that it was the best possible outcome in the face of Trump’s aggressive trade stance. The alternative, Brussels argued, would have been worse.

Still, on Friday, the 27 backed the Commission’s much-maligned deal with a majority.

They also approved a clause allowing the Commission to suspend the deal if the US fails to implement it, as well as a safeguard mechanism enabling the Commission to temporarily halt the agreement if US imports surge and disrupt the European single market as a result of tariff concessions.

Member states also debated the introduction of a “sunset clause” that would permanently end the tariff reductions after five years if the deal is not renewed – an idea they expect the European Parliament to champion in upcoming talks.

Both institutions must agree on a common text by next spring to finalise the tariff cuts. According to an EU diplomat, most member states could accept adding the clause, but Germany opposes it as it fears retaliation.

The head of the Parliament’s trade committee, German MEP Bernd Lange (S&D), has already included the idea of a sunset clause in his report on the deal’s implementation which will serve as the basis for the European Parliament’s debate.

Inside the Commission, officials hope the Council and Parliament will refrain from unravelling the agreement negotiated with Washington on the basis that it could trigger another round of escalation and amplify a trade war.

The United States’ Trade Representative Jamieson Greer and Secretary of Commerce Howard Lutnick are arriving in Brussels on Monday for what is expected to be a tense showdown with EU trade ministers.

After months of recriminations on both sides of the Atlantic over the implementation of this summer’s trade deal, the EU and the US are now expected to confront their most contentious differences head-on.

Washington will press to fast-track the deal’s rollout while pushing the bloc to scrap EU legislation it considers unfair to US companies, while Brussels will seek additional exemptions from the 15% US tariffs on its exportsand warn its counterparts about the potential fallout of US investigations into European products.

Ahead of the meeting, EU diplomats said they expected the discussion to be “frank”.

Commission president Ursula von der Leyen and US president Donald Trump clinched a trade deal in July after weeks of negotiations in which the EU tried to minimise the impact of Washington’s newly aggressive trade agenda. In the end, von der Leyen was able to strike a deal that EU-produced goods arriving in the US would be taxed at a rate of 15% while Brussels lifted its duties on most US products.

Presented by the Commission as the most advantageous deal it could get, the agreement has been widely criticised across the EU. The European Parliament, which has to vote on the Commission’s proposal to remove tariffs on US goods, is set to amend the deal and is discussing a 18-month suspension clause.

The US is complaining that the EU’s legislative agenda is moving too slowly. EU lawmakers will vote on the text in January and they should agree on a common text with EU member states next March or April – a timescale radically longer than the Trump administration’s preference.

Greer raised the issue in a meeting with European Parliament president Roberta Metsola last Friday.

EU faces criticism “with good confidence”

The EU is ready to face US criticism “with good confidence” an EU diplomat said, noting that the legislative process in Brussels could have taken a lot longer.

“To my knowledge, the US administration has not taken its decisions through Congress, so it doesn’t take quite as long in the US,” another EU diplomat said, implyingthat the US trade agenda was mainly decided from the White House.

The EU plans to show unity by handing over a list of proposed exemptions to the 15% tariffs they hope to obtain from the Americans. The list includes products such as wines, spirits and pasta.

“American friends are very much aware of where the European Union would like to see tariff reductions,” the same EU diplomat said.

For the Commission, which has competence to negotiate with Washington, the list of exemptions “remains a priority,” according to its deputy chief spokesperson, Arianna Podesta.

The EU is also concerned about the future of its steel exports. The US already imposes 50% tariffs on steel and aluminium, and has extended them to some 407 derivatives. A consultation already underway may see further derivatives added to the list.

As EU diplomats see it, adding tariffs on steel derivatives would go against the whole “spirit” of this summer’s agreement. The same goes for investigations still open by Washington into products such as pharmaceuticals, semiconductors and medical devices.

EU investments will also be on the agenda. Greer and Lutnick will meet in the afternoon, EU business representatives with EU Trade Commissioner Maroš Šefčovič.

The trade deal includes an EU pledge of €600 billion in investments in the US even though Brussels has no direct control over the private sector, which is the only force capable of actually delivering those investments.

Monday’s meetings will not be an easy task for the Europeans, as US pressure has been unrelenting since Donald Trump returned to the White House, with the president repeatedly threatening new tariffs or targeting EU legislation he deems too restrictive for US companies.

However, the EU has so far not looked intimidated, and is continuing to enforce the digital legislation that Trump and his administration have condemned.

In the last few weeks, Brussels has launched antitrust investigations against Amazon and Microsoft and hit Google with a €2.95 billion for abusing its dominant position in the advertising technology industry – moves that have not gone unnoticed in Washington.

Published on
18/11/2025 – 8:00 GMT+1

A resolution opposing the Mercosur trade agreement is set to be voted on Tuesday in France in the parliamentary committee on European affairs at the National Assembly.

Facing growing domestic opposition, French President Emmanuel Macron has limited room for manoeuvre when it comes to the Mercosur trade agreement, which includes Argentina, Brazil, Paraguay and Uruguay, and Brussels wants to sign before the end of the year.

The resolution, signed by 103 French MPs, calls on the French government to refer the matter to the EU Court of Justice, arguing that the trade deal violates EU treaties.

According to the MPs, the European Commission’s decision not to submit the trade part of the agreement to national parliaments for approval is illegal.

It comes a week after Macron met with French farmers and gave them insurances he would not back the deal in Brussels.

The president “was extremely clear,” reported French Agriculture Minister Annie Genevard after the meeting on 12 November: “France cannot approve at this stage the draft agreement with the Mercosur countries because this draft agreement does not protect the interests of farmers.”

However, the French President softened his position after the Commission proposed attaching a strengthened safeguard clause to the agreement to control any disruptions to the internal market resulting from an increase in imports of products from Latin America.

The Mercosur agreement aims to create a free trade area across the Atlantic by eliminating tariffs. But France has opposed this deal for years citing the risk of competition distortion with European agricultural products and environmental concerns.

On a trip to Brazil on 7 November, Macron seemed to take a step toward the agreement.

“I am rather positive, but I remain vigilant because I also defend France’s interests,” he said before adding that France had been “heard by the [European] Commission” on several of its concerns.

A blocking minority against the deal is uncertain

If France were to oppose the agreement, it would need to move quickly to form a blocking minority in the Council, the institution that brings together the EU member states.

A blocking minority requires at least four member states representing 35% of the population. And it is not clear that he has the numbers.

So far, Hungary and Poland has said it opposed the deal, while Ireland, Austria and the Netherlands, say they wait for the text of the agreement to be fully translated before deciding. Translation work should be finalised on 11 December.

The key country is Italy and a change of heart from Rome could be game changer.

Since the President of the Commission Ursula von der Leyen visited Uruguay in December 2024 for the political conclusion of the agreement, Rome has been cautious.

EU trade commissioner Maroš Šefčovič travelled to Italy at the end of October and gave assurances that the deal will not harm Italian farmers.

Supporters of the agreement, led by Germany and Spain, argue that it is necessary in the face of Chinese competition in the region and the tariffs imposed by the Trump administration on EU exports to the US.

But the issue is far from settled in the EU Parliament as well.

A group of 145 MEPs submitted a resolution last Friday also calling for a referral to the EU Court of Justice. If it were adopted by all MEPs at the end of this month, the referral would suspend the ratification process of the agreement.

Published on 17/11/2025 – 17:31 GMT+1
•Updated
17:34

The European Commission confirmed on Monday that US trade representative Jamieson Greer will meet EU trade chief Maroš Šefčovič on 23 November in Brussels.

The meeting is expected to be tense as the US is pressuring the European Union to revise legislative action it considers restrictive for US companies and speed up the implementation of the deal agreed between President Donald Trump and Commission chief Ursula von der Leyen which would cut tariffs for all American industrial goods to zero, deploy massive investments in the US and commit to purchase US energy.

The Commission introduced a legislation in August, mostly lowering tariffs on US goods, to secure some relief on duties in cars and car parts, deemed crucial for the European industry. Still, the European Parliament and the Council have not adopted the legislation, testing Washington’s patience.

Greer and Šefčovič will meet the day before US secretary for commerce Howard Lutnick, a close ally of President Trump, attends a gathering of EU trade ministers next Monday in Brussels.

The “Turnberry agreement” concluded between the EU and the US in July includes that the EU will pay 15% tariffs on its exports to the US and will reduce to 0% its tariffs on most of US goods arriving in the EU.

Still, the US is pushing for more, pressuring on the EU to scrap its digital and climate regulations regarded as “non-tariff” barriers to trade by Washington.

EU lawmakers hope to amend EU-US trade deal

Brussels has insisted that it will not cede on its “sovereign” right to legislate, including big US tech.

On 13 November, the Commission launched an investigation into whether Google is unfairly deprioritising news in search listing. The probe was opened under the Digital Market Act (DMA), designed to track abuse of dominance in the tech market. The US has criticised European digital legislation for what they consider is an unfair tax on US Big Tech.

Washington’s offensive also targets the landmark EU corporate supply-chain legislation adopted last year which requires companies to check their supply chains for dodgy environmental and labour practices.

At the beginning of October, it sent a document to the Commission requesting that US companies be exempted from this legislation on corporate due diligence.

Tensions may increase further as Brussels insists it wants to see some of the terms of the July deal changed to reflect a more balanced relation. The Commission came under intense scrutiny from the European parliament over a deal that was considered detrimental to Europe’s interests and too favorable for the US.

EU lawmakers say they are ready to amend the terms of the EU-US deal.

The head of the European Parliament’s trade committee, German MEP Bernd Lange (S&D) has presented a draft report that calls for maintaining EU tariffs on US steel and aluminium steel since the US continue to impose theirs at a rate of 50%.

It also proposes that the tariff removal on US goods should apply for 18 months and only be extended based ⁠on a Commission’s report of their impact on the EU market.

The EU member states and the Parliament hope to agree on the legislation by the spring.

All critical strategic supplies can be used as a weapon against the European Union, Trade Commissioner Maroš Šefčovič told Euronews in an exclusive interview.

The EU is dealing with the fallout from the Dutch government’s takeover of Nexperia, a chipmaker, citing national security. The move from the Hague has prompted a clash between Europe and China over who controls the company and its finished products, resulting in Chinese restrictions on chip exports.

Šefčovič, an experienced politician who oversees the all-important trade portfolio for the EU, said the episode highlights the complexities of the global supply chain as well as the risks associated with critical dependencies on third countries outside the EU.

“It very much underlines the lessons we’ve learned over the past years, and it doesn’t concern only China. Today, everything can be weaponised,” Šefčovič told Euronews. For Europe, he argued, “it started with [Russian] gas, then it continued with critical raw materials and high and low-end chips. It can all be weaponised.”

Šefčovič has been in contact with Chinese and Dutch authorities since the spat started more than a month ago. The Dutch government took control of Nexperia on September 30, fearing that the company would be dismantled and relocated to China. The Dutch authorities remain worried that the move could also involve a transfer of sensitive technology.

The Chinese responded by blocking chip exports, triggering concerns in Europe and around the world about a potential global shortage of automotive chips.

The impasse eased on 30 October following a meeting between the Chinese and the United States in South Korea, where both sides agreed to a truce in their bilateral trade dispute.

“China is taking appropriate measures to ensure trade from Nexperia’s facilities in China resumes, so that production of crucial chips can flow to the rest of the world,” a White House statement read.

Šefčovič suggested that the partial restoration of exports points to the start of a resolution to the standoff, but reiterated that the debacle was a warning of the urgent need to diversify.

“We are getting information from the car manufacturers to the spare parts producers that they are getting these chips,” he told Euronews.

“But we are only at the beginning of resolving this problem, so we will continue to talk with our Dutch colleagues and Chinese authorities.”

Vincent Karremans, the Dutch minister at the centre of the storm with Beijing, said in an interview that he would do it all again in the same manner and signalled that the episode is a warning of the large dependencies Europe has built over the years.

EU preparing new doctrine on economic security

The Nexperia saga is the latest incident between China and the EU over the supply of strategic components used across industries from cars to defence.

It also highlights how these materials are becoming a political tool for exerting economic pressure. After weeks of tensions that have impacted the European industry, the EU has secured a deal with China to ease restrictions on some rare-earth exports.

The Commission is working on a plan due to be presented next month that addresses some of these weaknesses. Šefčovič said the global competition to secure rare earths, critical components, and a stable supply chain required a unified approach.

“We have to work a little bit more like Japan, where they’re stockpiling some of the critical raw materials, some of that critical technologies and critical chips”, said Šefčovič.

“I think this would be one of the lessons which we want to bring in the new economic security doctrine, which we’ll be presenting before the end of the year.”

The EU has been actively pursuing a policy of de-risking, but not de-coupling from China, which would keep the door open to trade while applying safeguards in key areas deemed strategic for the EU and closing loopholes into the single market.

“Economic security and effective export controls would work only if they’re applied in harmony as homogeneous across the EU,” Šefčovič said.

“Those who want to abuse the system will always find a weak spot to penetrate the European market – and then put the whole European economy in jeopardy,” he concluded.

Published on 13/11/2025 – 18:01 GMT+1
•Updated
18:04

The EU 27 economy ministers reached an agreement on Thursday to terminate the €150 customs duty exemption that currently applies to parcels coming from non-EU countries.

The decision will impact Chinese e-commerce platforms, such as Shein and Temu, which are flooding the EU market with small parcels. In France, Shein is also at the centre of a scandal, facing legal proceedings over the sale of child-like sex dolls on its platform.

“This is a defining moment,” European Commissioner for Trade Maroš Šefčovič said after the meeting, adding that the move “sends a strong signal that Europe is serious about fair competition and defending the interests of its businesses.”

A whopping 4.6 billion parcels were imported in the EU in 2024, EU Economy Commissioner Valdis Dombrovskis recalled on Thursday.

He warned that the trend is “dramatically increasing,” adding that 91% of small parcels come from China.

The decision to remove the exemption on small parcels is part of a broader overhaul of EU customs rules which could take time.

Urgency to act as Chinese goods flood market

The 27 member states are expected to meet again in December to agree on a temporary system that would enable the implementation of the measures.

EU trade commissioner Šefčovič said that the EU will be ready to move as early as 2026.

“Ending the exemption will close long-standing loopholes that have been routinely exploited to avoid customs duties,” a European diplomat said.

The agreement reached Thursday by EU ministers means customs duties will be payable from “the first euro” on all goods entering the EU, like value-added tax, according to the same official.

The latest moves signal the tide may be turning for Chinese e-commerce platforms that have been moving aggressively into the European market.

A €2 levy for small packages proposed in July by the European Commission is already being discussed by the 27 member states.

Individual member states are also introducing national measures. Italy is working on a tax to defend its fashion industry from a wave of cheaper Chinese orders which national producers cannot compete with on pricing.

“We are satisfied with the measure introducing a tax on small parcels from non-EU countries, a phenomenon that is destroying retail trade,” Italian Minister of Economy Giancarlo Giorgetti said on Thursday.

EuroCommerce, which represents EU retailers in Brussels, first sounded the alarm over the increase in orders coming from Chinese platforms last month and called on European authorities to act in a coordinated manner.

“A swift, harmonised EU solution is essential, as such proposals risk fragmentation and undermining the level playing field,” Christel Delberghe, director general of EuroCommerce, said.

Published on 06/11/2025 – 20:47 GMT+1
•Updated
20:56

The Commission launched on Thursday an investigation into a potential collusion between the two stock exchange groups, Deutsche Börse and Nasdaq, in the market for derivative financial products.

At the heart of EU antitrust enforcer’s concerns is the potential coordination of their conduct in the listing, trading, and clearing of those derivatives, which, if proven, would be in violation of EU’s competition rules.

EU law encourage competition between different economic operators to ensure that prices are set fairly by the market, free from any collusion or abuse of dominant position.

In September 2024, the Commission carried out unannounced inspections at the premises of both financial groups, as permitted under EU rules.

It targeted their practices around financial derivatives, which are contracts whose value changes depending on the price of another asset, such as stocks or commodities.

“Deutsche Börse and Nasdaq entities may have entered into agreements or concerted practices not to compete,” the Commission said in a statement, “in addition, the entities may have allocated demand, coordinated prices and exchanged commercially sensitive information.”

A deal made in 1999

Deutsche Börse and Nasdaq are among the world’s largest stock exchange groups.

According to EU competition commissioner Teresa Ribera, such behaviours could also affect “the proper functioning of the Capital Markets Union – a cornerstone for innovation, financial stability and growth.”

The completion of the European Capital Markets Union — a barrier-free market for capitals aimed at reducing their costs for listed companies and improve investment conditions — is one of the priorities of Commission’s president Ursula von der Leyen.

If there was a collusion between Deutsche Börse and Nasdaq, it would constitute “an artificial barrier” on the EU market, Commission’s spokesperson Thomas Regnier told Euronews.

Deutsche Börse reacted in a statement saying : “We are engaging constructively with the European Commission.”

The stock exchange group explained that the Commission’s investigation concerned a 1999 deal, which Deutsche Börse considers “pro-competitive”.

“It aimed to build deeper liquidity in the respective Nordic derivatives markets and create efficiencies,” it argued, adding: “It provided clear benefits for market participants and was public.”

The 1999 deal was made between Deutsche Börse’s derivatives branch Eurex and the Helsinki Stock Exchange, which was acquired by Nasdaq in 2008, for the Nordic derivatives markets, it said.