LIVE: European Parliament debates US tariffs

Supreme Court limits presidential tariff authority

The US Supreme Court ruled that the President cannot impose tariffs under the International Emergency Economic Powers Act (IEEPA), prompting President Trump to enact a temporary 10% baseline import charge until July 24 while maintaining exemptions for aircraft, pharmaceuticals, and energy.

Section 232 tariffs remain untouched

The court ruling did not affect existing Section 232 tariffs on cars, steel, and aluminum, which continue to create transatlantic friction despite US Trade Representative Jameson Greer's public reassurance that Washington stands by the July 2024 joint statement deal.

MEPs challenge asymmetrical agreement terms

Parliament members criticized the EU-US deal that lowered European tariffs to 0% while the US retained 15%, arguing that the new 10% baseline eliminates Europe's preferential advantage and creates a level playing field that undermines the original compromise.

Manufacturing output rivals EU and US combined

China's manufacturing reportedly equals the combined output of the EU and US, commanding 30% of global share with growing dominance in higher-value supply chains and key industrial sectors.

Record €360 billion trade deficit

The EU's bilateral trade deficit with China reached €360 billion in 2025, accompanied by declining market access for European companies and the displacement of EU exports in third countries by subsidized Chinese competitors.

Three-pillar security strategy

The EU is pursuing a three-fold response of diplomatic engagement with Beijing, autonomous trade and industrial action under the Economic Security Strategy, and accelerated diversification through new free trade agreements with like-minded partners.

Mercosur delay cost €183 billion in exports

The delayed EU-Mercosur agreement cost Europe an estimated €183 billion in exports and €291 billion in GDP between 2021-2025, blocking access to a regional market of over 700 million people and creating urgency for provisional application.

India FTA unlocks high-tariff economy

The recently agreed free trade agreement with India will liberalize 97% of bilateral trade, with 90% of tariffs reaching zero and generating €4 billion in annual tariff savings for EU exporters.

Indo-Pacific expansion accelerates

Negotiations are advancing with Indonesia (98% trade liberalization), Australia, the Philippines, Thailand, Malaysia, and the UAE, alongside efforts to forge closer relations with the CPTPP and pursue digital trade agreements.

Paradigm shift to proactive security posture

The December Economic Security Strategy requires EU institutions and industry to systematically factor in a 'security premium' to reduce vulnerabilities, moving from reactive measures to targeted use of trade defense tools.

Steel safeguards tighten import controls

Proposed steel measures include reducing import quotas by 47%, doubling out-of-quota duties to 50%, and introducing strengthened traceability requirements via 'melted and poured' origin standards to prevent circumvention.

FDI screening and GSP framework concluded

Parliament advanced the Foreign Direct Investment screening regulation for investment scrutiny and finalized the new Generalized Scheme of Preferences (GSP) framework governing trade relations with 65 developing countries.