The European Commission is poised to present a revised trade proposal to the Trump administration this week, aiming to resolve the escalating tariff dispute between Washington and Brussels.
The updated package closely resembles earlier offers, calling for zero tariffs on industrial goods, reduced non-tariff barriers, and joint efforts to tackle China’s overcapacity in steel and aluminium. It also includes increased purchases of US products and pledges for greater investment.
In concrete terms, the EU appears ready to boost imports of American goods by €50bn, including liquefied natural gas (LNG), soybeans, and other agricultural exports.
But optimism is limited. With Washington showing no enthusiasm and the July deadline for the temporary suspension of US tariffs approaching, the window for a resolution is narrowing.
In search of trade allies, the EU is looking to improve its relations with economies of the Asia Pacific. The EU has signed trade deals with South Korea, Japan, Singapore, Vietnam, and New Zealand, and is negotiating others with Australia, Malaysia, Thailand, the Philippines, Indonesia, and India.
And Maroš Šefčovič, EU trade commissioner, is expected this week in Tokyo for high-level economic talks.
“Geopolitical shifts make it clear: boosting economic security through trusted partnerships is vital,” he said on social media last week, announcing the trip.
On Monday (5 May), EU Commission chief Ursula von der Leyen is set to travel to Paris to meet with French president Emmanuel Macron. After attending the plenary in Strasbourg, she will meet Ireland’s taoiseach Micheál Martin on Friday (9 May).
In Berlin, two-and-a-half months after the elections of February 2025, conservative leader Friedrich Merz will assume the chancellorship from Olaf Scholz on Tuesday (6 May) — amid a big domestic fiscal bang and trade tensions with the US and China.
Meanwhile, this week also marks the 80th anniversary of the end of World War II — although the Russian war in Ukraine is set to cast a long shadow over commemorations.
On Wednesday (7 May) and Thursday (8 May), EU foreign affairs ministers will gather for an informal meeting in Warsaw.
The so-called Gymnich will focus on EU-UK discussions (in preparation for a summit on 19 May), transatlantic relations, and Ukraine. There will also be a working session with candidate countries (Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, Moldova, Serbia, Turkey, Ukraine and Kosovo) focused on security and defence cooperation.
On Friday, Vladimir Putin will use the country’s traditional annual military parade on Moscow's Red Square to rally domestic support and frame his invasion of Ukraine as part of Russia's historical role.
Last month, EU foreign affairs chief Kaja Kallas warned EU candidate countries and member states against attending the parade. But despite the EU warning, Serbian president Aleksandar Vučić and Slovak prime minister Robert Fico are expected there, alongside Belarusian president Aleksandr Lukashenko, Chinese president Xi Jinping or Brazil’s Luiz Inácio Lula da Silva.
Hungarian PM Viktor Orbán won't attend.
Meanwhile, the European Commission is expected to present a roadmap for ending dependency on Russian energy imports on Tuesday. In 2022, the EU Commission launched its REPowerEU plan to fully end Russian fossil fuel imports by 2027 — a task that has been proven difficult. In 2024, the EU imported a total of €21.9bn of Russian fossil fuels, according to a report by the Ember think tank.
In Strasbourg, MEPs will gather for their monthly plenary session, with Ukraine peace talks and trade, the EU’s response to Trump’s trade policy and the new long-term budget high on the agenda.
In the report adopted in April by the parliament's budget committee, MEPs set out their priorities for the next EU budget post-2027, arguing that the current spending ceiling of one percent of the EU-27’s gross national income (GNI) is not sufficient to address the needs of Europe. MEPs have also said no to the commission’s idea to replicate national plans used for spending in the recovery funds. They also argue that the repayments of the Covid recovery funds borrowing costs should not come at the expense of other programs or priorities.
After a debate on Tuesday, the European Parliament will vote on the budget report on Wednesday, feeding into the commission proposal, which is expected in July.
On Thursday, MEPs will vote on the renewal of the suspension of trade barriers for certain imports from Ukraine, such as iron and steel, due to expire on 5 June 2025.
In the wake of the blackout that affected Spain, Portugal and France last week, lawmakers will also debate on Wednesday evening how to ensure that Europe's electricity grid is sufficiently resilient.
Turkey's EU membership progress and relations with Ankara will be the subject of discussions with EU foreign affairs chief Kaja Kallas on Tuesday, followed by a vote on Wednesday.
Also on Tuesday, MEPs will vote on a proposal that would make compliance with vehicle CO2 emissions targets from 2025-2027 more flexible, easing obligations for automakers.
Across Europe, various events will be held on Friday to mark Europe Day, celebrating the historic Schuman Declaration.
This year, we turn 25 and are looking for 2500 new supporting members to take their stake in EU democracy. A functioning EU relies on a well-informed public – you.
Elena is EUobserver's editor-in-chief. She is from Spain and has studied journalism and new media in Spanish and Belgian universities. Previously she worked on European affairs at VoteWatch Europe and the Spanish news agency EFE.
Elena is EUobserver's editor-in-chief. She is from Spain and has studied journalism and new media in Spanish and Belgian universities. Previously she worked on European affairs at VoteWatch Europe and the Spanish news agency EFE.