28/03/2025
EU Insight 28 March 2025
Brussels, 28 March 2025
US TARIFFS HIT EUROPEAN AUTOMOTIVE INDUSTRY
In the wake of “SignalGate”, US President Donald Trump announced new trade restrictions, including 25% tariffs on all vehicles imported into the country and 25% tax on automotive parts, which will come into effect in April and May respectively. Although not explicitly targeted towards the EU, the tariffs imposition marks an acceleration towards a full-blown transatlantic trade war, which will further weaken yet another key sector of the EU’s economy. Following Trump’s announcements, Commission President Ursula von der Leyen was quick to underline the EU’s openness towards negotiated solutions to the trade war, while insisting on its intention to safeguard its own economic interests. Despite the rather homogenous response to Trump’s protectionist measures by the EU, as their economic impact affects some Member States more than others, the Union’s unity is sure to be tested in its retaliatory measures.
COMMISSION PROPOSES PLAN TO SUPPORT EUROPE’S WINE SECTOR
Trump’s threatened tariffs of 200% on wine, champagne and other alcoholic products coming from the EU put the EU wine industry on high alert. In that light, aiming to cater to industry’s concerns, the Commission put forward a series of safeguard measures to ensure the competitiveness and resilience of Europe’s wine sector while reviewing the existing regulatory framework. Some of the initiatives proposed include greater flexibility with replanting authorisations, support for investments in climate change mitigation, and streamlining wine labelling to reduce costs by simplifying trade. Moreover, the EU-funded promotional campaigns for wines will be extended from three to five years, in an effort to consolidate the industry’s presence outside the Union.
47 STRATEGIC PROJECTS SELECTED TO BOOST CRITICAL RAW MATERIALS PRODUCTION
The Commission selected 47 Strategic Projects under the Critical Raw Materials Act. To recall, the Act broadly aims to secure Europe’s access to critical raw materials. The selected projects, spanning 13 Member States, should boost domestic capacities, key to reducing reliance on external suppliers and unreliable partners. With a foreseen capital investment of €22.5 billion, the projects cover the whole European raw material supply chains, from extraction to recycling, passing through processing. With the initiative, the Commission aims to strengthen critical raw material supply chains considered essential for the green and digital transitions and as such support strategic industries including defence and aerospace.
OMNIBUS I: COUNCIL APPROVES COMMISSION’S “STOP-THE-CLOCK” PROPOSAL
Following last month’s presentation of the Omnibus I package on corporate sustainability reporting and due diligence, work on the proposals has been moving at rapid pace. This week, Member States fully endorsed the Commission’s so-called “stop-the-clock” proposal which would delay the application of the Corporate Sustainability Due Diligence Directive (CSDDD) by one year and the Corporate Sustainability Reporting Directive (CSRD) by two. To note, the latter’s delay only applies to those companies not yet complying with the requirements. Council’s rapid work on the proposal comes as an attempt to provide legal certainty to companies, while core elements of the legislations are amended under the other proposal part of the Omnibus I package – the so-called “substantive” proposal.
COMMISSION LAUNCHES PREPAREDNESS UNION STRATEGY TO TACKLE CRISES
The Commission presented its “EU Preparedness Union Strategy”, a new plan aimed to enhance the EU’s ability to prevent and respond to emerging crises. The initiative comes amid growing geopolitical tensions and conflicts, increasing hybrid and cybersecurity threats, foreign information manipulation and interference and rising natural disaster risks due to climate change. By providing an action plan with 30 key measures, the Commission aims to provide crisis mitigation and response guidance across all levels of government (local, regional, national, and EU) and to the whole of society. As such, the proposed measures range from criteria to ensure the protection of essential infrastructure and services to calling on EU citizens to prepare a 72-hour self-sufficiency kit with essential food supplies and tools.
COMING UP NEXT WEEK
- 31 March-3 April: European Parliament plenary. On the agenda: Saving and Investments Union, Omnibus, European Steel and Metals Action Plan.
- 1 April: College of Commissioners. On the agenda: New European Internal Security Strategy.
- 2-3 April: Council informal meeting of defence Ministers. On the agenda: White Paper for European Defence.
- 3-4 April: First EU-Central Asia summit: On the agenda: multilateral cooperation, security challenges, economic, trade and investment, and Global Gateway.
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