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Cross Border Trade Updates

May 27, 2025

U.S.-EU Trade
- On 27 May, the EU agreed to fast-track trade talks with the United States in hopes to de-escalate their trade dispute.
- On 25 May, President Trump said that he would delay imposing 50% tariffs on all imports from the EU until 9 July to allow more time for trade negotiations.
- On 23 May, President Trump announced on Truth Social increasing the EU reciprocal tariffs from the 10% baseline to 50% due to discussions with the EU “going nowhere”.
  - The proposed change in reciprocal tariffs from the 10% baseline to 50% would increase annual tariff costs by $2 B (from $465 M to just over $2 B).
  - On 22 May, the EU shared a revised trade proposal with the United States that takes into U.S. interests such as international labor rights, environmental standards, economic security, and gradually reducing tariffs to zero for non-sensitive products as well as industrial goods.
U.S. Tariff Negotiations‍
- Japan: On May 30, Japan’s top tariff negotiator intends to visit the United States for a fourth round of trade talks.‍
- India: On 23 May, Union Minister of Commerce and Industry Piyush Goyal said he had a “constructive meeting” with U.S. Secretary of Commerce Howard Lutnick for a mutually beneficial trade agreement between the two countries.‍
- Vietnam: On 23 May, Vietnam’s Trade Minister met with U.S. Secretary of Commerce among others pledging to narrow their trade gap and combat fraud and illegal transshipment.‍
- Taiwan: On May 20, The Taiwanese president said Tuesday that trade tensions between the United States and Taiwan are just “frictions between friends” in a show of optimism as tariff negotiations are underway with Washington.

EU-Mexico Trade Deal to be Finalized by End of Year
- On 22 May, Italy’s Foreign Minister Antonio Tajani said that the free trade agreement between the EU and Mexico could be signed by end of year.
  - On 27 January, the EU concluded negotiations on a free trade agreement with Mexico that will replace the one that is currently in force. As the agreement is still being finalized, it is unclear how it will affect PMMI members.‍
EU Proposes a Handling Fee for Low-Value E-Commerce Packages
- On 21 May, the EU said it plans to charge a handle for low-value packages which would be €2 (or $2.25) on packages that are sent directly to consumers and €.50 for those that are distributed through warehouses.
  - On 21 May, China responded by urging the EU to “abide by its commitment to openness and provide a fair, transparent, and non-discriminatory business environment for Chinese companies”.
Legal Actions Against President Trump’s Tariffs
- On 23 May, a federal judge in Florida suggested that the President has the authority to unilaterally impose tariffs but stopped short of issuing an order affirming the president's right to impose sweeping tariffs.
- On 21 May, Twelve U.S. states asked a federal court on Wednesday to halt President Donald Trump's "Liberation Day" tariffs, arguing that President Trump overstepped his authority by declaring a national emergency to impose across-the-board taxes on imports from nations that sell more to the U.S. than they buy.
Actions at the World Trade Organization (WTO)
- On 21 May, the Trump’s Administration’s new tariffs were focus at the WTO as both the European Union and China lamented the “turmoil” stemming from the duties while the U.S. turned the criticism back on the WTO for failing to address “imbalances” and a lack of reciprocity.