You’re listening to “European Union Tariff News and Tracker,” your focused update on how the Trump administration’s trade agenda is reshaping the transatlantic economy and what it means for the European Union.

According to the Centre for Economic Policy Research’s VoxEU project, the average US tariff rate has climbed to roughly 17 percent under the second Trump administration, up from low single digits before the trade war escalated. VoxEU notes that Europe has been singled out alongside China as a strategic rival, and that EU exports in metals, autos, machinery, and certain consumer goods now face some of the steepest US duties. The same research warns that these tariffs are already disrupting supply chains, raising costs for EU manufacturers integrated into US-bound value chains, and prompting talk in Brussels of a more assertive “strategic autonomy” agenda in trade and industry policy.

One of the key political shocks for Europe, VoxEU reports, was the new US National Security Strategy released in November 2025, which explicitly frames tariffs as a tool of national security and leverage over allies. That strategy reinforces Trump’s long-standing demand for “reciprocal tariffs,” insisting that EU duties on US goods be matched one-for-one, even though economists featured by VoxEU argue that this rationale is fundamentally flawed and risks long-term damage to both economies rather than fixing trade imbalances.

At the same time, there are signs Washington may be looking beyond classic tariffs in its confrontation with Europe. A December analysis from Filenews, summarised by Talanews, highlights growing pressure from US business over the EU’s new sustainability and due-diligence rules, including the Corporate Sustainability Due Diligence Directive, or CS3D, and the Corporate Sustainability Reporting Directive, or CSRD. These rules apply to companies with more than 450 million euros in EU revenue and effectively force many large US multinationals to align their global operations with EU climate and human rights standards. The American Chamber of Commerce in the EU has warned that these obligations could cost US firms as much as a trillion dollars in compliance, calling them a form of “EU regulatory supremacy.”

Crucially for tariff watchers, that Filenews piece argues the Trump administration is being urged by some economists not to answer Brussels’ regulatory push with new US tariffs on EU goods. Instead, the recommendation is for Washington to assert that US companies are not accountable to EU regulators for activities on US soil, and to wage this fight through regulatory and legal channels rather than customs duties. If that approach prevails, listeners should expect fewer new headline tariffs on EU products in the near term—but a sharper regulatory clash over standards, data, and sustainability, which could still spill back into tariff threats if talks break down.

Looking ahead, platforms like VoxEU are already asking how the EU should respond: whether by targeted retaliation, by doubling down on open trade with other partners, or by accelerating its own industrial policy to reduce dependence on the US. Whatever Brussels chooses, the combination of a higher US tariff baseline around 17 percent and a widening regulatory rift means EU exporters now operate in a structurally more hostile US market than a decade ago.

That’s it for this edition of European Union Tariff News and Tracker. Thank you for tuning in, and don’t forget to subscribe so you never miss an update. This has been a quiet please production, for more check out quiet please dot ai.

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