Understanding the impact of tariffs on inflation is a complex task as it involves analysing responses along the pricing chain, including those by foreign exporters, distributors, producers and retailers. At different stages of this pricing chain, domestic firms could respond to tariff announcements by building up inventories before tariffs are implemented, shifting the sourcing of their imports from countries facing higher tariffs to countries facing lower tariffs (trade diversion) and adjusting the pricing of their products to accommodate the impact...

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The Council and the Parliament today agreed to overhaul the EU customs framework, giving the Union a more modern toolbox to deal with trends such as huge increases in trade volumes, especially in e-commerce, a fast-growing number of EU standards that must be checked at the border and challenging geopolitical realities. The reform establishes innovative new instruments to facilitate global trade, collect customs duties more efficiently and to tighten controls on non-compliant, dangerous or unsafe goods. Overall, the new system will allow for more robust controls without...

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Suspension clause in case the US introduces new tariffs Sunrise clause: tariff preferences only effective if the US respects its commitments Sunset clause: tariff preferences set to expire by 31 March 2028, unless renewed On Thursday, MEPs adopted their position on two proposals implementing the tariff aspects of the EU-US Turnberry trade deal. The texts, if agreed with EU member states, will eliminate most tariffs on US industrial goods and provide preferential market access for a wide range of US...

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The EU and Australia have today announced the adoption of a groundbreaking Security and Defence Partnership. They have also concluded negotiations for an ambitious and balanced free trade agreement (FTA) and agreed to launch formal negotiations for the association of Australia to Horizon Europe, the world's largest funding programme for research and innovation. With these steps, the EU and Australia are delivering mutually beneficial outcomes and further reinforcing their already close relations in a time of geopolitical uncertainty. The FTA...

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Suspension clause in case of new US tariffs Sunrise clause: tariff preferences only effective when the US respects commitments Stronger protection regarding steel imports The International Trade committee adopted its position on Thursday on two proposals implementing certain tariff aspects of the EU-US Turnberry trade deal. The International Trade committee adopted its position on Thursday on two proposals implementing certain tariff aspects of the EU-US Turnberry trade deal. MEPs in the International Trade Committee adopted their position on two legislative proposals that eliminate...

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The U.S. Department of Commerce today announced further implementation of the American AI Exports Program with a Call for Proposals from U.S. industry-led consortia to export full-stack AI technology packages. Under President Donald J. Trump’s AI Action Plan and export directives, the Department of Commerce is implementing a full-stack AI export package promotion program to advance America’s AI leadership globally. “America’s continued global leadership in AI depends on our ability to export our AI to allies around the world,” said Under...

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