Trump Tariffs

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.

Published on
24/11/2025 – 18:20 GMT+1

US Commerce Secretary Howard Lutnick said that Washington can reduce duties on EU steel and aluminium but only if the Europeans agree to ease the implementation of digital rules following a meeting in Brussels on Monday.

Lutnick, who is a close ally of President Donald Trump and negotiated on his behalf a trade deal with the EU over the summer introducing 15% tariffs, said that European should reassess the way they implement their flagship policies on digital regulation if they want further tariff relief. Lutnick did not call to remove the rules but did say the way in which they are applied should be “more balanced” for American tech companies.

Brussels is desperately seeking to obtain a reduction of the 50% tariffs that the Trump administration imposed on European aluminium and steel in June under pressure from the industry.

The US does want the EU “to put these rules away, but find the balanced approach that works for us,” he told reporters in Brussels. “Then we will, together with them, handle the steel and aluminium issues.”

“The enforcement is quite aggressive at times”

Lutnick and US trade representative Jamieson Greer were in Brussels meeting with EU27 trade ministers and Commission boss Maroš Šefčovič for a working lunch.

The implementation of the trade deal signed over summer was at the center of the discussion, which was “open and direct,” according to an EU diplomat.

The EU and the US clinched a trade deal in July in which the US tripled tariffs on EU while Europeans agreed to cut tariffs for most US industrial goods at 0%. US tariffs on EU steel and aluminium remain stuck at a much higher rate of 50% despite the deal.

Lutnick and Greer also met EU Tech Commissioner Henna Virkkunen who stressed in a statement the importance of the Digital Market Act (DMA) and the Digital Services Act (DSA), the two landmark digital regulations applied in the EU. The comments suggest the Commission is not ready to water them further for the time being.

To counter the US offensive on its digital legislation, EU Trade Commissioner Šefčovič said that the EU is working hard to explain its legislation to the US and stressed that there no discriminatory practices applied to US companies. The rules, he argued, are the same for everyone operating in the EU single market regardless of their origin.

Still, the US insists that is not the case and American Big Tech is being punished.

“The enforcement is quite aggressive at times,” Greer said about EU tech rules, adding that the US government wants to make sure their companies do not see their global revenues “affected” by foreign rules. In his comments, Greer’s tone was severe.

Brussels recently launched investigations against Amazon and Microsoft under the DMA which prevents big platforms from abusing their dominance in the tech market. It also hit Google with a €2.95 billion over antitrust rules despite the threats from the US.

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 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.