Tariff crisis The future of free trade

The agreement is “Trump-proof” – the EU and the US are taking a breather

The party groups in the EU Parliament have agreed on how Donald Trump’s tariffs should be handled – an agreement that will make both Europe and the US breathe a sigh of relief. This is reported by Politico.

After Donald Trump’s Greenland threat, all work on implementing the customs agreement between the EU and the US was paused. But now work is moving forward again.

However, a bunch of new security guarantees are in place that will “Trump-proof” the agreement. The US currently has 50 percent tariffs on many steel products from the EU and if that level is not reduced to 15 percent within six months, the EU will automatically reintroduce its steel tariffs. The agreement will also have an end date: March 2028, when new negotiations will take place.

In addition, the EU has already hammered out that any new US threats regarding European territory will lead to the agreement being immediately terminated.

– Once the agreement is in place, the EU will also have a new tool to respond if we are again subjected to tariff blackmail, says Swedish EU parliamentarian Karin Karlsbro (L).

Australia and EU in final sprint for free trade agreement

The EU and Australia are entering the final phase of negotiations for a free trade agreement. Australian Trade Minister Don Farrell is traveling to Brussels for talks in an uncertain global situation characterized by US tariffs and China's export restrictions.

– Australia is ready to conclude an agreement, but we do not conclude agreements for the sake of agreements, Farrell said before his departure, according to Bloomberg.

Meat quotas and other market access for agriculture have remained key issues since the talks stalled in 2023.