Distribution of Economic Gains and Downside Risks

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A European Union assessment found that President Donald Trump’s new tariff policy will increase levies on some of the bloc’s exports, including cheese and some agricultural products, above the level permitted in their trade agreement.

After the US Supreme Court struck down Trump’s use of an emergency-powers law to impose his so-called reciprocal tariffs around the world, he announced a new 10% global levy, which he then threatened to increase to 15%.

The European Commission, which handles trade matters for the bloc, told lawmakers Monday that the new global tariff will be added to levies that are already in place, according to Bernd Lange, chair of the European Parliament’s trade committee. The new cumulative rate means some goods would be above the 15% ceiling the EU and US agreed to in their trade deal.
Under Trump’s new tariff program, some products including butter, plastics, textiles and chemicals would have levies above that 15% ceiling, according to people familiar with the commission’s assessment. The new global tariffs can stay in place for as many as 150 days.Commission spokesman Olof Gill declined to comment on the assessment.

The EU-US trade deal — struck last summer between Trump and European Commission President Ursula von der Leyen — would impose a 15% tariff rate on most EU exports to the US while removing tariffs on many American goods heading into the bloc. The US would also continue to impose a 50% tariff on European steel and aluminum imports.

The bloc agreed to the lopsided deal in the hopes of avoiding a full-blown trade war with Washington and retaining US security backing, particularly with regards to Ukraine. European Parliament suspended legislative work on approving the EU-US accord on Monday, requesting clarity on Trump’s new trade policy.

Today's show features:

• Kathryn Judge, Harvey J. Goldschmid Professor of Law at Columbia Law School, on the next steps in the legal process following Friday’s Supreme Court ruling on President Donald Trump’s tariffs
• Greg Daco, Chief Economist at EY, on the latest global trade rumblings from the 2026 National Association of Business Economics (NABE) Policy conference
• Bloomberg News Health Reporter Madison Muller on Novo Nordisk’s next-generation obesity shot delivering less weight loss than Eli Lilly’s rival drug
• Ryan Vlastelica, discussing the week ahead for tech stock traders ahead of Nvidia’s earnings
• Bloomberg News Weather Reporter Lauren Rosenthal on the latest blizzard to hit New York City and the Northeastern US

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