Vulcan View: The latest EU developments 5 May – 9 May

European Commission launches public consultation on U.S. countermeasures and prepares WTO challenge

On Thursday, 8 May, the European Commission opened a four-week public consultation on a list of U.S. imports worth €95 billion subject to countermeasures, and on possible restrictions on certain EU exports to the US. This comes as the Commission is negotiating a mutually beneficial solution to U.S. tariffs—otherwise it will proceed both with targeted EU duties and a World Trade Organization (WTO) dispute.

The list covers U.S. industrial and agricultural goods totalling €95 billion. The consultation also examines possible EU export restrictions on steel scrap and chemical products to the US, valued at €4.4 billion. This consultation is a crucial step. It allows anyone potentially affected – from large industries to small businesses and consumers – to submit their views on the proposed measures and the impact of the U.S. tariffs. This feedback, due by 10 June, will help the Commission finalise its proposal. Should negotiations falter, and after consulting with EU Member States (a process known as “comitology”), the legal framework for these countermeasures could be swiftly enacted.

WTO dispute

In parallel, the EU will request WTO consultations on the U.S. so-called “reciprocal” tariffs and the 25% car duties, arguing they breach core WTO obligations. WTO rules require any member to seek dispute settlement rather than impose unilateral sanctions, with the EU insisting these duties are “unjustified and in clear breach of global trade rules.”

After the formal request, the U.S. and EU have up to two months to find an amicable resolution. Failing agreement, the EU may ask for a WTO panel to be convened to examine the case on its merits. If the panel rules in the EU’s favour, the U.S. could be required to repeal its contested tariffs or face authorised EU reprisals under WTO supervision.

Conclusion

The European Commission is treading a careful line, prioritising diplomacy and negotiated solutions whilst robustly preparing to defend EU interests if necessary. European Commission President von der Leyen acknowledged the negative global economic impact of tariffs, stating, “At the same time, we continue preparing for all possibilities, and the consultation launched today will help guide us in this necessary work.”

Ultimately, the EU hopes to de-escalate the situation and achieve a balanced outcome that benefits both European and American citizens and businesses. However, it remains steadfast in its readiness to act decisively to protect its economic interests and uphold the integrity of the global trading system.

European Commission announces roadmap towards ending Russian energy imports

On Tuesday, 6 May, the European Commission unveiled its “Roadmap towards ending Russian energy imports.” The Roadmap aims to cut European reliance on Russian oil and gas by 2027. This ambitious new strategy would effectively end Moscow’s gas sales to Europe and would also require gas companies to break ties with Russia.

The initiative is in response to Russia’s unjustified aggression against Ukraine and will come as a result of a coordinated action between the Commission and Member States under the REPowerEU Plan launched in 2022.

The plan represents a strategic shift in EU energy policy and looks towards energy security, accelerating the green transition, and reducing geopolitical vulnerabilities from EU dependency on Russian fossil fuels. Gas imports from Russia have already decreased significantly from 45% in 2021 to 19% in 2024, replaced by supplies from more reliable sources as well as increases in cleaner energy and coordinated efforts to reduce unnecessary energy use.

Unlike previous sanction packages against Russia, the new measures will not require unanimous support from EU Member States to take effect. Instead, the proposals will be advanced through mechanisms that allow for qualified majority voting,  effectively sidelining anticipated objections from countries such as Hungary and Slovakia, which have traditionally resisted tougher energy sanctions against Moscow due to their domestic energy dependencies and political agendas.

EU Energy Commissioner Dan Jørgensen stated, “I hope that everybody will move forward, obviously, but if they don’t, that is also ok…That is also part of the EU, that sometimes the majority makes decisions when necessary.”

The Commission’s Roadmap marks a decisive step in the EU’s approach to energy policy, combining strategic autonomy with the EU’s climate goals. By reducing dependence on Russian fossil fuels, the EU is not only reinforcing its geopolitical resilience but also accelerating the green transition with long-term climate goals. The use of a qualified majority vote for this initiative reflects a shift towards the EU separating ties from Russia despite political resistance from certain member States. The Roadmap positions the EU to lead by example in aiming towards a more stable, independent and climate-conscious energy future.

EU and Singapore ink landmark Digital Trade Agreement

On Wednesday, 7 May, the European Union and Singapore signed a landmark Digital Trade Agreement (DTA), cementing their shared ambition to deepen cooperation in the digital economy. Commissioner for Trade and Economic Security Maroš Šefčovič and Singapore’s Minister-in-charge of Trade Relations Grace Fu Hai Yien formalised the pact in Brussels, aiming to create a “high-standard framework” that facilitates cross-border data flows, bolsters consumer trust and enhances growth between both partners.

What the DTA means

In an era where over 60% of global GDP is linked to digital transactions, the EU-Singapore DTA is a forward-thinking accord. It’s a standalone agreement, distinct from the existing Free Trade Agreement, specifically designed to address the unique opportunities and challenges of the digital age. The core idea is to establish clear and modern rules for digital trade, ensuring that as technology races ahead, the frameworks governing it keep pace.

This agreement isn’t just about facilitating trade, it’s about building a digital environment based on shared principles. The EU and Singapore are keen to champion open and competitive digital markets that are transparent, fair, and free from unnecessary obstacles to international commerce. A central element of the DTA is prioritising individuals and their rights, which aligns with the EU’s established approach to digital and data governance. As Commissioner Maroš Šefčovič and Minister Grace Fu highlighted in their joint statement: “The Agreement reaffirms our shared commitment to foster a secure and inclusive digital economy, and to support the digital transformation of our societies.”

Benefits

The DTA is set to provide practical benefits for everyone involved. For consumers, it offers improved online protection and increased trust when shopping online. This includes more transparent rules regarding electronic contracts, secure methods for electronic authentication, and safeguards against unsolicited spam.

For businesses, especially SMEs, the DTA offers much-needed legal certainty and aims to simplify cross-border digital trade. One significant aspect is the commitment to trusted cross-border data flows. The agreement prohibits unjustified data localisation measures, which require businesses to store data within a specific country’s borders.

Additionally, the agreement safeguards valuable intellectual property, including the software’s source code, from unauthorized disclosure. It also ensures that customs duties will not be imposed on electronic transmissions, making digital trade more cost-effective.

Next steps

Both parties will now undertake domestic ratification procedures. In the EU, this requires consent from the European Parliament. The agreement was already authorised for signature by the EU Council in April 2025. Once in force, the DTA will serve as a blueprint for future digital-trade pacts worldwide, reinforcing a global ecosystem in which innovation, resilience and fairness go hand in hand.

Compliments of Vulcan Consulting – a member of the EACCNY