The power struggle between the two blocs is becoming increasingly tense, although there is no direct trade war yet.
In Brussels, the European Parliament’s trade committee will meet on Wednesday to assess the agreement the European Commission previously made with President Trump. This agreement stipulates that the U.S. may impose fifteen percent higher import duties on European products without European countermeasures.
The agreement is intended as a temporary compromise, but support in the European Parliament is far from guaranteed. This makes it a power struggle between EU institutions as well.
Many Members of the European Parliament view the agreement as too far-reaching because they believe the concessions put European industry at a disadvantage. The agricultural sector and the steel industry would be the main victims.
Chairwoman Von der Leyen defends the agreement by stating that the arrangements made are better than a full trade war. She argues that an escalation with ever-increasing tariffs would severely impact the European economy. According to her, the compromise at least keeps the door open for further negotiations and prevents unnecessary damage to both economies.
At the same time, the European Commission has decided to temporarily refrain from countermeasures such as additional duties on American products. The reasoning is that open retaliation would increase the risk of escalation. Brussels thus chooses not to burden the ongoing talks with new border barriers.
In Washington, a congressional hearing on European laws regulating digital trade will be held a day later (Thursday). The Digital Services Act (DSA) and the Digital Markets Act (DMA), which impose rules on platforms like Google, Facebook, and X, are subject to sharp criticism. American politicians label these rules as censorship and an attack on the free market.
A counter view comes from Brussels: the EU states that the rules are precisely meant to create a level playing field between companies and protect citizens from unfair practices by large corporations. The Commission also emphasizes that the European internal market for digital trade must apply the same standards as for traditional sectors.
Notably, former EU Commissioner Breton refuses to appear at the U.S. hearing. He believes that European legislation does not have to be accounted for before the American Congress. By doing so, he underlines that the EU will continue to set its own course, even if this leads to new tensions with Washington.