04/04/2025
EU Insight 4 April 2025
Brussels, 4 April 2025
TRUMP’S “LIBERATION DAY” TARIFFS ESCALATE TRANSATLANTIC TRADE WAR
In his signature bombastic fashion, US President Donald Trump unveiled a swath of tariffs on numerous trade partners, labelling the whole ordeal as the US’ economic “Liberation Day”. Specifically, the US will now start imposing a 10% universal tariff on all of its imports – regardless of country of origin – as well as dedicated “reciprocal” tariffs to important trading partners such as the EU, China, India or South Korea. The 20% tariff imposed on all EU goods follows the already existing 25% tariffs on EU steel, aluminum and automotive imports. EU leaders, including Commission President von der Leyen, as well as Italy or Germany’s heads of state, were quick to criticize Trump’s actions, but the EU is yet to present concrete retaliatory countermeasures to these latest tariffs. Notably, these measures could go beyond orthodox trade protectionist actions, something EU Member States will formally start discussing next week.
PARLIAMENT GREENLIGHTS THE COMMISSION’S OMNIBUS I “STOP-THE-CLOCK” PROPOSAL
The European Parliament (EP) endorsed the Commission’s, so-called, Omnibus “stop-the-clock” proposal with a strong majority. By adopting the Commission’s proposal, the EP thus supported introducing a 2-year delay to the application of the EU’s sustainability reporting framework (CSRD) and a 1-year delay to the EU’s due diligence rules (CSDDD), both of which are currently being reviewed under the Sustainability Omnibus (Omnibus I). This week’s adoption by the EP, ensures that the delay may officially become law before the summer break, after Member States have given their final sing-off. As a result, certain companies that would have been captured by the framework as of 2026 but should now have the legal certainty that they will have two more years to prepare for compliance.
MARINE LE PEN BANNED FROM 2027 PRESIDENTIAL RACE AFTER EMBEZZLEMENT CONVICTION
Marine Le Pen, leader of France’s far-right National Rally, has been barred from running for public office for five years. The ban follows an embezzlement conviction, shattering her plans to run for President in the 2027 French elections. The landmark ruling found Le Pen, and other members of the party, guilty of diverting over €4 million in EU funds, misusing the money to pay National Rally staff. She personally received a four-year prison sentence – which in essence will be reduced a two-year house arrest sentence – along with a €100,000 fine. Le Pen, who was considered a frontrunner in the presidential race, has condemned the ruling as a wholly “political decision” and vowed to appeal, with right-wing allies rallying behind her.
COMMISSION PROPOSES COHESION POLICY REVAMP TO FUND DEFENCE AND CLIMATE ACTION
The Commission is planning a major overhaul of its cohesion policy – one of the EU’s largest funding programmes – as part of the mid-term review of the initiative. Originally aimed to reduce structural inequalities between regions across the EU, the proposed revision suggests enabling to redirect billions of cohesion funds towards the EU’s strategic priorities. Concretely, the Commission is proposing to expand the scope of its policy to also encompass tackling the green transition, strengthening Europe’s defence industry and responding to regional needs like affordable housing and water resilience. In that sense, the Commission invites Member States to readjust their cohesion-allocated funds under the 2021-2027 cohesion budget, worth €392 billion.
BOLSTERING THE EU’S ABILITY TO GUARANTEE CITIZENS’ SECURITY THROUGH A NEW STRATEGY
In response to new and rising hybrid threats, cybercrime and organised crime across the EU, the Commission launched the so-called ProtectEU, a new European Internal Security Strategy, designed to foster security for citizens. The plan calls for stronger cross-border collaboration, expanded powers for security agencies such as Europol, better intelligence-sharing and new legal tools to help police and prosecutors keep pace with digital-age threats. The strategy also includes targeted measures targeting organised crime, terrorism, and child exploitation. The move signals a broader shift in mindset on internal security. Nonetheless delivering on the strategy will rely mostly on Member States’ political will and their ability to work together in an increasingly challenging security environment and volatile geopolitical landscape.
COMING UP NEXT WEEK
- 7 April: Foreign Affairs Council (Trade). On the agenda: Trade relations with the US and China.
- 7-8 April: Informal meeting of culture and media ministers.
- 9 April: College of Commissioners. On the agenda: AI Continent Action Plan.
- 9 April: EU-Ukraine Association Council.
- 11 April: Eurogroup. On the agenda: Economic developments and euro area policy coordination.
- 11-12 April: Informal meeting of economic and financial affairs ministers. On the agenda: Competitiveness of European financial markets, security and defence financing.
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