Businesses continue to navigate a series of trade shocks, from the overturned International Emergency Economic Powers Act (IEEPA) tariffs that the Supreme Court struck down to soaring energy costs stemming from the war in the Middle East.
This week, the European Union parliament voted to advance the US-EU trade deal, resuming the ratification of a framework agreement the two sides reached last year after a months-long pause. The EU halted its adoption of the deal after the Supreme Court invalidated President Trump’s most sweeping tariffs and Trump threatened to take over Greenland earlier this year.
Currently, the US has imposed 10% tariffs on countries around the globe for 150 days, which could rise to 15% as the Trump administration pursues other tariffs. The administration announced two new trade investigations in March, scrutinizing 60 countries for their fair trade practices under Section 301 of the Trade Act of 1974.
Meanwhile, after a federal judge ruled that the US government must begin paying out more than $130 billion in tariff refunds to US businesses, more than 2,000 companies, including Costco (COST) and FedEx (FDX), have filed lawsuits seeking compensation. The US Customs agency said it’s finalizing a four-step process that will allow importers to electronically file claims and receive tariff refunds.
In a move aimed at easing energy costs amid the Middle East war, Trump issued a temporary waiver for a 1920s shipping law, allowing foreign-flagged vessels to transport cargo around the US for 60 days.
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Grace O’Donnell
EU votes to advance US trade agreement, clearing a major hurdle
The European Union voted to advance the bloc’s trade deal with the US, clearing a major hurdle after weeks of delays.
EU lawmakers adopted the so-called Turnberry agreement, a framework that US President Trump and EU Commission President Ursula von der Leyen reached in Scotland last August. US officials and diplomats had been pressuring the EU to implement the deal, warning that the US could cut off Europe’s “favorable” access to liquefied natural gas shipments if lawmakers did not pass the deal.
Under the agreement, Europe would remove tariffs on many US goods, including aircraft, chemicals, and agricultural products. In exchange, the US would impose a 15% rate on many European imports and maintain 50% duties on steel and aluminium. The deal also requires the EU to spend $750 billion on US energy products by 2028.
Implementation of the deal was halted in January after the Supreme Court struck down President Trump’s broadest tariffs, which he replaced with a different set of 10% tariffs. That uncertainty over US tariff policy, along with the president’s threats to annex Greenland, led Europe to freeze the ratification process.
As part of the vote on Thursday, EU lawmakers agreed to include new safeguards in the deal: a suspension clause that would suspend the deal if the US introduces new tariffs on the EU above the 15% rate and a sunrise clause that would have the deal expire in March 2028 unless both sides agree to extend it.
Next, the European Commission will negotiate with EU member states on those two proposals and the final text of the bill.