Blog | Tariff hikes are putting European companies under strain at a time when productivity growth is already sluggish. Short-term business sentiment is not the only thing at stake. Tariffs could also dampen business dynamism, a key channel for innovation and long-term growth. Business dynamism – the constant churn of firms entering the market, growing, contracting and then exiting – is crucial for productivity. Through “creative destruction”, new firms with better technologies and business models take the place of their...

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  PROTECTING THE U.S. ECONOMY AND NATIONAL INTERESTS: Today, President Donald J. Trump signed a Proclamation imposing a temporary import duty to address fundamental international payments problems and continue the Administration’s work to rebalance our trade relationships to benefit American workers, farmers, and manufacturers. President Trump is invoking his authority under section 122 of the Trade Act of 1974, which empowers the President to address certain fundamental international payment problems through surcharges and other special import restrictions. By taking this action,...

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Bernd Lange, chair of Parliament’s International Trade Committee and standing rapporteur for the US, issued the following statement. Following a meeting of the committee’s shadow rapporteurs (i.e. political group representatives), Bernd Lange (S&D, DE) said: “The ruling by the Supreme Court of the United States of 20 February 2026 on the use of the International Emergency Economic Powers Act (IEEPA) is clear and unequivocal. Its implications cannot be ignored, and business as usual is not an option. A key instrument used on the US...

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The European Commission requests full clarity on the steps the United States intends to take following the recent Supreme Court ruling on the International Emergency Economic Powers Act (IEEPA). The current situation is not conducive to delivering “fair, balanced, and mutually beneficial” transatlantic trade and investment, as agreed to by both sides and spelled out in the EU-U.S. Joint Statement of August 2025. The Commission will always ensure that the interests of the European Union are fully protected. EU companies and exporters must...

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