MINEX Forum

Tag: European Union

  • EU Faces Criticism Over Plans to Fast-Track Industrial and Energy Projects

    EU Faces Criticism Over Plans to Fast-Track Industrial and Energy Projects

    The European Commission is facing growing criticism after a new report by watchdog Corporate Europe Observatory (CEO) accused Brussels of weakening environmental protections in order to accelerate industrial and energy projects across Europe.

    Published on Tuesday, the report claims the EU is using the ongoing energy crisis to justify deregulation measures that could benefit fossil fuel companies, mining firms, hydrogen developers, and major technology corporations. According to CEO, proposed legislation would speed up approval processes for projects labelled as “strategic” or of “overriding public interest,” potentially allowing them to bypass environmental assessments and reducing opportunities for public scrutiny.

    The debate comes amid broader discussions in Brussels over balancing Europe’s industrial competitiveness and green transition goals with environmental safeguards and democratic oversight. The issue has gained further attention following the EU executive’s recent decision to increase free pollution allowances for energy-intensive industries under the bloc’s carbon market by nearly €4 billion.

    CEO researcher and campaigner Pascoe Sabido argued that while the energy crisis initially pushed Europe toward reducing dependence on fossil fuels, industry lobbying has transformed fast-track measures into tools for expanding polluting infrastructure.

    The report warns that the proposed reforms could weaken protections for local communities by limiting their ability to challenge projects affecting health, land, and livelihoods. Hydrogen transport systems, carbon dioxide pipelines, and large-scale data centres were identified as projects that could undermine environmental and social standards.

    Specific concerns were raised over mining developments in Sweden linked to critical raw materials for the energy transition, which campaigners say threaten Indigenous Sámi communities and local water systems. In Ireland, rapidly expanding data centres are reportedly placing additional pressure on the national electricity grid and increasing reliance on fossil fuel power generation.

    The report also highlights concerns over carbon dioxide transport pipelines associated with fossil gas infrastructure. CEO pointed to incidents in Yazoo County in the United States as evidence of potential health risks linked to pipeline leaks, including asphyxiation and long-term health impacts.

    According to the analysis, industry lobbying has influenced several upcoming EU legislative initiatives, including the Environmental Omnibus, the Grids Package, and the Industrial Accelerator Act. Campaigners argue these proposals could reduce environmental impact assessments, expand automatic permit approvals, and restrict access to legal appeals.

    Danish MEP Niels Fuglsang defended accelerated permitting procedures for renewable energy and grid projects, arguing that Europe must speed up clean energy deployment to strengthen energy independence, competitiveness, and the green transition. He also supported exemptions from certain EU water regulations for grid infrastructure projects, calling current procedures excessively time-consuming.

    The European Commission has defended its broader simplification agenda as necessary to accelerate the energy transition, improve industrial competitiveness, and reduce dependence on imported fossil fuels. Environmental groups, however, warn that easing restrictions for polluting infrastructure could lock Europe into long-term fossil fuel dependence rather than prioritising cleaner energy alternatives.

  • The Mineral Security Trap: Why Europe’s Green Ambitions Are a Geopolitical Minefield

    The Mineral Security Trap: Why Europe’s Green Ambitions Are a Geopolitical Minefield

    In the early 1990s, while the West was celebrating the “End of History” and the triumph of globalized trade, Deng Xiaoping issued a quiet prophecy: “The Middle East has oil; China has rare earths.”

    For three decades, that statement was treated as an industrial footnote. Today, it has become the defining thesis of a new, colder era of geopolitics. In the latest episode of the Raw Matters podcast, hosts Peter Tom Jones and Julia Poliscanova sat down with Albéric Mongrenier, Executive Director of the European Initiative for Energy Security (EIES), to peel back the layers of Europe’s strategic “naivety.”

    The verdict? Europe’s transition to clean energy isn’t just an environmental project—it is a massive transfer of strategic dependency that could, if left unmanaged, leave the continent’s power grids and military hardware under the remote control of Beijing.

    The Cyber Trojan Horse in the Power Grid

    The conversation begins with a startling reality check regarding the hardware of the energy transition. We often talk about “critical minerals” as raw commodities—lithium, cobalt, copper. But Mongrenier points to a more immediate, digital threat: the inverter.

    Every solar panel, wind turbine, and EV charger requires an inverter to convert DC power to AC. Today, approximately 80% of new solar installations in Europe use Chinese inverters, with a massive share provided by a single company: Huawei.

    “These devices are connected to the internet,” Mongrenier warns. “They are entry doors for cyberattacks.” This creates two distinct levels of vulnerability:

    1. Intelligence Harvesting: By controlling the inverters, external actors can map Europe’s energy consumption and grid behavior with more granularity than European governments themselves.

    2. The “Kill Switch”: Mongrenier references reports from the US and UK regarding hidden “kill switches” discovered in Chinese-made components. In a conflict scenario, the theoretical ability to remotely disable Europe’s energy system—shutting down wind farms and solar arrays at the click of a button—is no longer science fiction.

    Dual-Use: The F-35 and the Wind Turbine

    One of the most persistent myths of the “Green Deal” is that critical minerals are purely “clean tech” materials. In reality, the minerals powering the energy transition are the exact same materials required for modern warfare.

    “NATO came up with its own list of 12 defense-critical minerals late in 2024,” Mongrenier notes. The overlap is nearly total:

    • Rare Earths: Essential for the permanent magnets in EV motors, but also for the guidance systems of missiles and the engines of F-35 fighter jets.

    • Graphite: Used in battery anodes, but also vital for the hulls of submarines.

    • Titanium & Cobalt: The bread and butter of both high-performance turbines and military superalloys.

    This dual-use nature has created a “Mineral Security Trap.” If Europe cannot secure its own supply of these minerals, it loses more than just its ability to hit climate targets—it loses the industrial base required to defend itself.

    A Tale of Two Strategies: The US Stick vs. The EU Paper

    The podcast highlights a widening gap between how Washington and Brussels are reacting to the Chinese monopoly.

    The American “All-of-Government” Blitz

    Under both the Biden and now the Trump administrations, the US has moved with aggressive speed. The US has set a hard deadline: January 2027. By then, defense contractors must purge Chinese rare earths, titanium, and tantalum from their supply chains.

    “The US uses a big stick,” says Mongrenier. They aren’t just asking for change; they are mandating it while simultaneously throwing tens of billions of dollars in subsidies and equity stakes at domestic projects like MP Materials.

    The European “Silo” Problem

    In contrast, Europe’s response remains “timid.” Poliscanova points out that Europe is still hampered by siloed decision-making. While the US treats mineral security as a singular mission across all departments, the EU is split between various Directorates-General (DGs) that often fail to communicate.

    Furthermore, Europe remains obsessed with the “business case.” “Strategic infrastructure does not always have a business case,” Poliscanova argues. “Sometimes you just invest because it’s a critical asset. We need to forget about the short-term profit and think about resilience.”

    The Axis of Minerals: Russia, Iran, and China

    The discussion takes a darker turn when addressing the current conflict in the Middle East. Mongrenier points out that the “axis” of Russia, Iran, and China is not a loose association—it is a functional industrial alliance.

    Take the drones currently saturating battlefields in Ukraine and the Middle East. Whether they are Iranian Shahed drones or Russian variants, their supply chains lead back to China. “90% of these drones are battery-powered,” Mongrenier says. “If we build a ‘European Drone Wall’ for our own defense, but the batteries and minerals come from China, have we actually improved our security?”

    The Path Forward: Ending the Naivety

    As the episode concludes, the hosts and guest outline a roadmap for a more resilient Europe:

    1. Aggregating Demand: Europe must connect the car industry and the defense sector to send a massive, unified “demand signal” to miners and refiners outside of China.

    2. The “Carrot and the Stick”: Europe needs to provide the financial “carrots” (subsidies and public procurement) while wielding the “stick” (vetting components for cyber risks and mandating non-Chinese supply chains for critical defense hardware).

    3. Industrial Sovereignty: 2026 and 2027 are viewed as the “midterm” years for European leadership to finally treat energy and mineral security as the same issue.

    The message is clear: Europe’s “naivety” has been a luxury of a more stable world. In 2026, as missiles fly and megawatts become the new currency of power, that luxury has officially run out. To save its climate, Europe must first secure its minerals—and to secure its minerals, it must finally learn to play the game of “Realpolitik.”

  • EU Industrial Accelerator Act Seen as Key to Reviving Metals Production

    EU Industrial Accelerator Act Seen as Key to Reviving Metals Production

    The proposed Industrial Accelerator Act (IAA) is being positioned as a pivotal opportunity to strengthen Europe’s industrial base, with the non-ferrous metals sector highlighting its critical role in achieving the European Union’s climate, digital and security objectives.

    Industry stakeholders argue that the IAA must prioritise restoring a viable business case for producing metals within Europe, which has been undermined in recent years by persistently high energy prices and rising operational costs. They stress that without targeted measures to address energy affordability, the credibility of the IAA as an industrial policy tool could be compromised.

    Among the key proposals is the development of “lead markets” to support demand for low-carbon materials. However, industry representatives warn that such mechanisms must remain realistic, flexible and aligned with sector-specific conditions. They emphasise the need for accompanying incentives, including VAT reductions and public procurement criteria, to prevent European producers from being undercut by cheaper imports.

    The introduction of local content requirements is also seen as a strategic priority to reduce reliance on critical raw materials from third countries and to support a “Made in EU” approach. At the same time, stakeholders caution that these measures must be carefully calibrated to avoid increasing production costs excessively or disrupting global supply chains. Flexibility is recommended, particularly in recognising partnerships with allied countries such as the UK, Canada, Australia and Japan.

    Green public procurement is identified as another key lever, with calls for minimum EU-wide standards based on life-cycle sustainability criteria. Industry groups argue that procurement frameworks should prioritise material efficiency, recyclability and end-of-life recovery, while remaining achievable and aligned with existing regulatory frameworks.

    Permitting reform is also highlighted as a major requirement. Current processes for obtaining environmental approvals can take years, delaying investment and project development. Stakeholders propose the introduction of EU-wide time limits for permitting decisions, alongside measures to streamline administrative procedures and improve regulatory predictability.

    Access to finance remains a central concern, particularly given the high capital and operating costs associated with decarbonisation. The IAA is expected to support both CAPEX and OPEX through long-term, predictable funding mechanisms, including carbon contracts for difference and dedicated instruments to mitigate energy price volatility.

    In addition, stakeholders advocate for a more coordinated approach to critical raw materials, including tailored stockpiling strategies to enhance short-term supply security. However, they emphasise that long-term resilience will depend on increasing domestic extraction, processing and recycling capacity within Europe.

    Overall, industry representatives stress that the success of the IAA will depend on its ability to balance climate ambition with industrial competitiveness. Without addressing structural cost disadvantages and regulatory barriers, they warn that Europe risks further erosion of its metals production base in an increasingly competitive global market.

  • EU Divided as 10 Countries Push to Reform Carbon Market Ahead of Summit

    EU Divided as 10 Countries Push to Reform Carbon Market Ahead of Summit

    A growing rift has emerged within the European Union over climate policy, as ten member states call for urgent reforms to the bloc’s Emissions Trading System (ETS), warning that current rules risk undermining industrial competitiveness.

    In a joint letter addressed to the European Commission ahead of a key European Council summit in Brussels, leaders from Austria, the Czech Republic, Croatia, Greece, Hungary, Italy, Poland, Romania and Slovakia argued that the existing ETS framework poses an “existential risk” to strategic industries. The countries are urging a slower and more flexible transition to balance climate ambitions with economic stability.

    The ETS, the EU’s flagship carbon market, requires companies to pay for their emissions but currently provides a limited number of free allowances to ease the burden on industry. The signatories are calling for these free allowances to be extended beyond 2034 and for the planned phase-out, set to begin in 2028, to be slowed.

    They argue that rising energy prices, persistent inflation and the high cost of decarbonisation technologies are placing heavy strain on energy-intensive sectors such as steel, chemicals and manufacturing. Without adjustments, they warn, European industries could struggle to remain competitive globally.

    The letter also calls for measures to reduce volatility in carbon prices, enabling businesses to better plan long-term investments, and for action to prevent excessive electricity costs, which are increasingly linked to natural gas prices.

    The appeal comes at a politically sensitive moment, as EU leaders prepare to discuss energy security challenges exacerbated by geopolitical tensions, including the conflict in the Middle East. The debate highlights a broader struggle within the bloc to reconcile climate targets with economic resilience.

    European Commission President Ursula von der Leyen has defended the ETS, describing it as a cornerstone of the EU’s climate strategy and a key mechanism for driving investment into clean technologies. However, she acknowledged the complexity of reforming the system, noting that electricity pricing is influenced by multiple factors, including national taxes, grid costs and energy market structures.

    The push for reform is not universally supported. A separate group of countries, including Denmark, Finland, the Netherlands and Sweden, has called for the ETS to remain unchanged, arguing that it has been effective in reducing emissions, supporting cross-border electricity trade and generating significant economic benefits.

    With competing positions emerging, EU policymakers face mounting pressure to deliver a compromise. The ten countries have urged the Commission to accelerate its review of the ETS and present concrete proposals within weeks, rather than waiting until the scheduled review later in the year.

    The outcome of the upcoming summit is expected to shape the future direction of Europe’s climate policy and its impact on industrial competitiveness.

  • Euromines Urges Stronger Raw Materials Integration in EU Industrial Accelerator Act

    Euromines Urges Stronger Raw Materials Integration in EU Industrial Accelerator Act

    The European Union’s proposed Industrial Accelerator Act (IAA) represents a significant step toward building a more proactive and coordinated industrial policy aimed at strengthening competitiveness, resilience and strategic autonomy across key manufacturing sectors. However, industry representatives warn that the legislation must more clearly integrate the upstream raw materials sector to ensure the effectiveness of Europe’s strategic supply chains.

    The IAA seeks to stimulate investment and accelerate the development of strategic industries by promoting the production of key technologies and introducing measures such as simplified permitting, “Made-in-EU” criteria and requirements related to low-carbon content. These provisions are intended to create stronger regulatory certainty and targeted incentives capable of mobilising private capital and supporting the EU’s green and digital transitions.

    According to industry association Euromines, these policy tools reflect a growing recognition within the EU that achieving climate and technological goals requires a comprehensive industrial strategy capable of aligning supply and demand across critical value chains.

    However, the organisation argues that the current framework does not sufficiently address the role of domestic raw materials production. Without stronger links between manufacturing policies and upstream resource extraction, increased demand for strategic goods could fail to translate into greater supply security within the European Union.

    Euromines also notes that the proposed reliance on non-preferential rules of origin primarily reinforces final manufacturing stages rather than recognising the strategic importance of raw materials produced within the EU. While cooperation with trusted international partners remains important, extending recognition of EU origin to certain Free Trade Agreement partners may do little to strengthen Europe’s internal resource base.

    The organisation has called for greater integration of raw materials policy into the Industrial Accelerator Act, arguing that minerals and metals form the foundation of all strategic industrial value chains.

    Euromines said it is prepared to work with EU lawmakers to address these gaps, emphasising that fully incorporating domestic raw materials production into the IAA will be essential for building resilient supply chains and achieving the bloc’s long-term industrial, strategic and climate objectives.

  • Czech Cinovec Lithium Project Faces Local Opposition Despite EU Strategic Backing

    Czech Cinovec Lithium Project Faces Local Opposition Despite EU Strategic Backing

    A major lithium mining project in the Czech Republic’s north-west is drawing increasing local opposition even as it gains strategic support from the European Union as part of its efforts to secure critical mineral supplies for the green transition.

    The Cinovec deposit, located near the German border in the Ore Mountains, is considered one of the largest lithium resources in Europe. Developed by Geomet, a company jointly owned by Czech state-controlled energy group CEZ (51%) and European Metals Holdings (49%), the project could become a cornerstone of the EU’s emerging domestic lithium supply chain.

    The deposit is estimated to contain up to three percent of global lithium reserves. Current development plans envisage mining roughly 3.2 million tonnes of ore annually, producing about 37,000 tonnes of battery-grade lithium carbonate each year, enough to supply materials for around 1.3 million electric vehicles.

    The project has been designated a strategic initiative under the EU’s Critical Raw Materials Act, enabling accelerated permitting procedures and financial support. The development has also received a €36 million grant from the EU’s Just Transition Fund and a €360 million subsidy from the Czech government. Total project investment is estimated at around CZK 42 billion (€1.75 billion), with mining potentially beginning by 2030.

    However, residents and local officials in the Usti nad Labem region have raised concerns that the project could reverse years of environmental recovery following the decline of heavy industry and coal mining. The area, which transitioned from large-scale industrial extraction to tourism and spa services, now faces the prospect of renewed mining activity.

    Local leaders warn that lithium extraction could bring environmental and social impacts, including noise and air pollution, groundwater contamination and disruption to landscapes and biodiversity. Critics also point out that parts of the proposed mining area lie within protected Natura 2000 zones and the Ore Mountains UNESCO World Heritage site.

    Activists and environmental researchers argue that large-scale lithium extraction cannot be considered environmentally neutral, even if linked to renewable technologies and electric vehicle production. Concerns have also been raised about transparency, community consultation and the long-term economic benefits for local residents.

    Economic uncertainties further complicate the project’s outlook. Lithium prices have fallen sharply since their peak in 2022, raising questions about the financial viability of large-scale hard-rock lithium mining at Cinovec. Analysts note that the project’s costs may be relatively high due to the ore’s lower lithium concentration, while reliance on public subsidies and volatile global markets adds additional risk.

    Despite these challenges, Czech authorities continue to view the project as strategically important for maintaining the country’s role in the European automotive supply chain and supporting the EU’s broader goal of reducing dependence on imported battery materials.

  • Fen Deposit in Norway Expands 81%, Strengthening Europe’s Rare Earth Ambitions

    Fen Deposit in Norway Expands 81%, Strengthening Europe’s Rare Earth Ambitions

    Rare Earths Norway has announced a substantial upgrade to mineral resources at its Fen project, describing the deposit as Europe’s largest rare earth accumulation and a potential cornerstone of the continent’s strategic supply chain.

    According to a revised estimate prepared by consulting firm WSP, indicated and inferred resources at Fen now total 15.9 million tonnes of rare earth oxides, an 81 percent increase from the 8.8 million tonnes reported in 2024. The updated figures place Fen well ahead of Sweden’s Per Geijer deposit, previously cited by LKAB as Europe’s largest rare earth discovery.

    Bernd Schaefer, CEO of EIT RawMaterials, said the resource expansion elevates Fen from a promising discovery to what he described as a world-class strategic asset. He noted the project could serve as the foundation for a compact “mine-to-magnet” value chain within Europe, supporting industrial resilience and long-term raw material security.

    Europe currently has no operating rare earth mines, leaving the region heavily dependent on imports. Eurostat data show that in 2024, 95 percent of the European Union’s rare earth imports originated from China, Malaysia and Russia. The development of Fen would support EU efforts to diversify supply and reduce strategic vulnerability.

    Rare earth elements are essential for advanced defence systems, including precision motors and sensors used in naval vessels, fighter aircraft and drones, as well as permanent magnets required for electric vehicles, wind turbines and consumer electronics. The latest resource estimate indicates that approximately 19 percent of Fen’s oxides consist of neodymium and praseodymium, key materials for high-performance magnets. The deposit also contains notable quantities of niobium and thorium.

    Rare Earths Norway has previously outlined plans to commence production in late 2031, targeting annual output of 800 tonnes of NdPr by 2032, equivalent to roughly 5 percent of projected EU demand. While the company holds an extraction permit, it still requires an operating permit before mining can begin. The latest announcement did not revise projected timelines or production targets.

    The project aligns with the EU’s ResourceEU action plan adopted in December 2025, which seeks to accelerate domestic extraction, processing and recycling of critical minerals. However, current EU policy does not restrict the export destinations of rare earths mined within the bloc, meaning production could still be sold to non-European markets.

  • EU Lawmaker Says Serbia’s Jadar Lithium Project Remains Frozen Amid Legal Uncertainty

    EU Lawmaker Says Serbia’s Jadar Lithium Project Remains Frozen Amid Legal Uncertainty

    The proposed Jadar lithium project in Serbia remains suspended due to legal and regulatory uncertainty, despite its strategic importance for Europe’s critical raw materials supply, according to European Parliament representative Hildegard Bentele.

    Speaking to Deutsche Welle, Bentele, a member of Germany’s Christian Democratic Union and rapporteur on critical raw materials policy in the European Parliament, said the project remains “frozen,” although mining major Rio Tinto continues to retain exploitation rights over the deposit.

    She noted that the project could play a significant role in strengthening Europe’s lithium supply chain while delivering economic benefits to Serbia, provided a stable and reliable legal framework is established. According to Bentele, Rio Tinto has indicated its intention to comply with environmental and social standards should regulatory conditions improve.

    The Jadar project, considered one of Europe’s largest lithium deposits, had previously been included on the European Union’s list of strategic raw material projects. Plans linked the development to potential downstream battery manufacturing investments, including earlier discussions involving German industry and automotive supply chains.

    However, Bentele stressed that lithium mining projects require predictable licensing systems and institutional stability, conditions she believes are currently lacking. She pointed to concerns over governance, judicial independence and public trust in state authorities as key factors contributing to the project’s suspension.

    The EU, she added, will not pressure Rio Tinto to resume development under present circumstances, describing continued investment as too risky without regulatory certainty. The company’s earlier decision to halt implementation in Serbia’s Jadar Valley was therefore understandable given public opposition and doubts surrounding permitting procedures.

    While acknowledging broader challenges in sourcing critical minerals globally, often located in politically complex jurisdictions, Bentele emphasised that Serbia’s status as an EU candidate country places importance on alignment with European governance and environmental standards.

    According to her assessment, the future of the Jadar project depends primarily on improvements to Serbia’s legal and institutional framework. Until then, the project remains suspended rather than permanently cancelled, leaving open the possibility of future development if regulatory stability is restored.

  • Sweden’s Per Geijer Deposit Emerges as One of Europe’s Largest Rare Earth Discoveries

    Sweden’s Per Geijer Deposit Emerges as One of Europe’s Largest Rare Earth Discoveries

    A major rare earth discovery linked to Sweden’s long-established Kiruna iron mining district is positioning northern Europe as a potential future supplier of critical minerals essential for electric vehicles, renewable energy and advanced technologies.

    State-owned miner LKAB has confirmed that the Per Geijer deposit, located near Kiruna above the Arctic Circle, contains an estimated 2.2 million tonnes of rare earth oxides alongside substantial volumes of iron ore and phosphorus. The updated resource estimate places the site among the largest known rare earth deposits in Europe.

    Rare earth elements are vital components in permanent magnets used in electric vehicle motors, wind turbines and consumer electronics. Europe currently relies heavily on imports, with China responsible for processing nearly 90 percent of global rare earth supply, creating strategic vulnerabilities across industrial and energy transition supply chains.

    LKAB estimates that once fully developed, Per Geijer could eventually meet up to 18 percent of Europe’s rare earth demand. The deposit also contains approximately 1.2 billion tonnes of iron ore and phosphorus, with rare earth minerals primarily hosted in apatite, allowing recovery alongside existing iron mining operations.

    The project forms part of a broader European effort to strengthen domestic raw material production under the EU Critical Raw Materials Act, which aims to reduce reliance on single external suppliers and expand regional mining and processing capacity by 2030. Per Geijer, together with LKAB’s related developments in Malmberget and Luleå, has received strategic project status, enabling accelerated permitting procedures and improved access to financing.

    Rather than developing a standalone rare earth mine, LKAB plans an integrated industrial chain linking iron ore extraction in Kiruna with downstream processing facilities. Concentrates produced at Malmberget would be transported to a new industrial hub in Luleå, where hydrometallurgical processing will separate rare earth oxides, phosphoric acid for fertiliser production and gypsum by-products.

    To support final separation of individual rare earth elements, LKAB has also invested in Norwegian technology company REEtec, which is developing alternative refining methods aimed at reducing dependence on Chinese processing technologies.

    Despite its strategic importance, the project faces social and environmental challenges. Mining activity has already forced the gradual relocation of Kiruna due to ground subsidence, while Indigenous Sámi communities have raised concerns that expanded mining could disrupt traditional reindeer herding routes and fragile Arctic ecosystems.

    LKAB emphasises that Per Geijer remains a mineral resource rather than an approved mining reserve, with further exploration, technical studies and permitting required. Industry analysts expect large-scale rare earth production to take between 10 and 15 years before material from the project reaches European manufacturing supply chains.

    Even at full capacity, experts note that the deposit will complement rather than replace global supply networks. However, the presence of a major domestic rare earth source marks a significant shift in Europe’s long-term strategy to secure materials underpinning the green and digital transition.

  • EU Expects US to Narrow Scope of Steel and Aluminium Derivative Tariffs

    EU Expects US to Narrow Scope of Steel and Aluminium Derivative Tariffs

    European Union officials expect the United States to soon streamline its broad tariffs on products containing steel and aluminium, potentially easing a major source of tension in transatlantic trade relations.

    According to sources familiar with the bloc’s position, the Trump administration may within weeks reduce the number of so-called “derivative products” subject to the 50% tariff rate applied to goods containing the two metals. The EU has repeatedly argued that the sweeping metals tariff contradicts last year’s US-EU trade agreement, which established a 15% tariff ceiling for most European exports.

    The United States regularly updates the list of derivative products covered by the higher tariff, which now includes more than 400 items. The expanding scope has complicated compliance for exporters, who must calculate the share of steel or aluminium content in their goods, and has diminished the practical benefits of the bilateral trade accord.

    EU Trade Commissioner Maros Sefcovic told lawmakers he had received reassurances from US counterparts that the issue is being reviewed and that progress could come “rather soon.”

    The anticipated changes would not affect tariffs on commodity-grade steel and aluminium.

    The discussions come amid broader uncertainty in transatlantic trade relations. The US Supreme Court recently struck down the administration’s use of emergency powers to impose reciprocal tariffs, prompting Washington to introduce a new 10% global levy in addition to existing duties. That move could push tariffs on certain EU exports above levels allowed under the US-EU agreement.

    In response, the European Parliament has suspended work on ratifying the trade accord pending clarification of the new US policy. Despite the complications, both sides have signalled their intention to preserve the agreement while navigating the transition to a revised trade framework.