Donald Trump has threatened tariffs after the EU fined Google under the Digital Markets Act. Luxembourg's direct US trade is limited, but its open economy and financial centre remain exposed to a wider dispute.
The India–UK trade agreement took effect on 15 July 2026, delivering immediate tariff relief but leaving quotas, regulatory barriers and limited services liberalisation.
President Trump ordered an immediate halt to all US trade with Spain on 8 July 2026, citing Madrid's refusal to hit NATO's 5%-of-GDP spending target and its stance on the Iran war. Spain shrugged the remarks off and the European Commission insisted trade is an EU-wide matter, underscoring the limits of unilateral action against a single member state.
China's commerce minister, Wang Wentao, held two days of talks in Brussels with EU trade chief Maroš Šefčovič as rows over rare-earth export curbs, electric-vehicle tariffs and a record trade deficit pushed the bloc's most fraught economic relationship toward a possible confrontation — with consequences for open, trade-dependent economies such as Luxembourg.
Outgoing IMF chief economist Pierre-Olivier Gourinchas says globalisation is being transformed rather than dismantled, as supply chains adapt and the EU strikes deals that bypass the US. For Luxembourg — the world's most trade-open economy and second-largest fund centre — how global commerce is rewired is an existential question.
Donald Trump has threatened to slap 100% tariffs on goods from any country that taxes US technology companies, a move that would override the EU-US trade deal due to take effect on 4 July. Brussels called the threat unjustified. Luxembourg's direct US exposure is small, but a blanket transatlantic tariff would strike at the steel exports, industry and financial services on which its open economy depends.
As US tariffs reroute Chinese goods toward Europe, the EU is tightening rules on steel, electric cars and low-value parcels — but remains split over how protectionist to become, with stakes that land squarely on Luxembourg.
Donald Trump has threatened a 100% US tariff on all French wine and champagne unless Paris drops its digital services tax, a move that pulls European exporters and the EU's collective trade defence — Luxembourg included — back into the firing line.
On 8 June 2026 EU ministers gave final approval to a regulation that slashes tariff-free steel imports by 47% and doubles the out-of-quota duty to 50%, replacing the safeguard that expires on 30 June. The measure is aimed squarely at a flood of cheap, subsidised steel linked to Chinese overcapacity. For Luxembourg, home to ArcelorMittal's headquarters and 3,520 steelworkers, the rules will help decide whether the LUX2029 restructuring deal stabilises the country's industrial anchor.