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President Trump’s new tariff threats escalate EU-US trade tensions

On Friday (5 September), US President Donald Trump threatened to impose more tariffs against the EU following the EU’s €2.95 billion fine against Google for violating anti-monopoly laws. The European Commission has claimed that Google has abused its dominant position in the advertising technology market.  

The company will now have 60 days to propose a remedy to the EU. Trump has indicated he might order an investigation under Section 301 of the Trade Act of 1974 – a provision which allows the President to impose trade restrictions if an investigation finds that a country is engaged in a practice that is unjustifiable and burdens or restricts US commerce. 

Meanwhile, the US Supreme Court has agreed to fast-track the case challenging Trump’s tariffs. The High Court has set oral arguments for the first week of November – laying out an expedited schedule for both sides to file briefs ahead of that date.

At the same time, on Wednesday, 10 September, a debate was held in Strasbourg on the EU-US trade deal, under the title of ‘Implementation of EU-US trade deal and the prospect of wider EU trade agreements.’

EU Trade Commissioner Maroš Sefčovič began the debate with a short speech, sharing that the EU acted decisively to protect its economy, choosing stability and predictability over escalation and a damaging trade war with the US. He emphasised that the agreement avoided tariffs of 30-50% that would have seriously strained transatlantic relations, while providing much-needed certainty for industries facing volatility. Additionally, he shared that negotiations are continuing to expand the tariff-free trade list – with key sectors such as medical devices under discussion.

US President Trump’s threat to impose new tariffs and willingness to retaliate through Section 301 measures could further escalate current trade tensions. Meanwhile, the US Supreme Court’s decision to fast-track Trump’s hearing creates even more uncertainty in the trade landscape, with potential rulings shaping the scope of future executive trade actions. 

The Strasbourg debate on EU-US trade has highlighted divisions between the political groups. While the Commission and centre-right groups framed the deal as pragmatic and needed to ensure stability, other groups questioned its legitimacy and long-term stability. Many MEPs are demanding stronger safeguards. 

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