Executive summary

This edition of Trade Talking Points provides updates on the following topics.

• Latest United States (US) trade policy announcements, including:
• US Supreme Court hears oral arguments on legality of the International Emergency Economic Powers Act 1977 (IEEPA) tariffs
• US urges delay to EU Regulation on Deforestation-free Products
• US and South Korea renegotiate existing trade deal
• Latest European Union (EU) developments, covering the EU-Ukraine Deep and Comprehensive Free Trade Area

Latest US trade policy announcements

US Supreme Court oral arguments on legality of IEEPA tariffs

On 5 November 2025, the Supreme Court of the United States heard oral arguments in a case challenging the legality of President Trump's use of IEEPA as a basis for imposing his Reciprocal Tariff Policy and fentanyl-related tariffs on US trading partners.

IEEPA permits certain measures to "deal with any unusual and extraordinary threat" to the national security, foreign policy or US economy following the declaration of a national emergency. The legal issues under consideration are:

• Whether the President can use IEEPA to "regulate importation" by imposing tariffs, or whether tariffs should be excluded
• Whether the "major questions doctrine" applies — mandating congressional authorization before the President can take actions that have broad economic and political consequences

Although a decision could be issued as late as June 2026 when the Court's current term ends, this case was heard on an expedited basis, which could mean the decision will come much sooner.

US urges delay to EU Regulation on Deforestation-free products

On 6 November 2025, the Arkansas congressional delegation wrote to US Trade Representative Jamieson Greer, urging a delay to the implementation of the US-EU trade deal, until the bloc "substantially reforms" its Regulation on Deforestation-free Products (EUDR). In the letter, Senator Tom Cotton (R-AR) claimed that the current scope of the EUDR would jeopardize "$3.5b in US exports and threaten 900,000 American forest products workers."

The EUDR will come into effect on 30 December 2025 for medium and large companies and on 30 June 2026 for micro and small enterprises operating in the EU. The legislation aims to ensure that products consumed in the EU do not contribute to deforestation or forest degradation and specifically focuses on seven commodities: cattle, cocoa, coffee, oil palm, rubber, soya and wood.

US and South Korea renegotiate existing trade deal

On 29 October 2025, representatives of the US and South Korea met to renegotiate the terms of the existing US-South Korea trade deal (the official outcome document has not yet been released).

The US reportedly pledged to reduce South Korea's tariff rate to 15%. In addition, both parties agreed that:

• South Korea will purchase 3.3 million tons US liquified natural gas per year, valued at approximately US$100b
• South Korea will make a US$200m cash investment into the US
• A US company will invest US$5b to build South Korea's cloud infrastructure

Both countries have reportedly agreed to engage in public-private collaboration in the mining and refining of critical minerals, aiming to stabilize and diversify the critical mineral supply chain.

Latest EU trade policy developments

EU-Ukraine Deep and Comprehensive Free Trade Area enters into force

On 29 October 2025, the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA) agreement entered into force.

The DCFTA agreement was signed in 2014, commencing trade liberalization between the EU and Ukraine and contributing to the gradual integration of Ukraine into the EU Single Market. The newly upgraded DCFTA is structured around three key areas:

1. Enhanced trade flows: The DCFTA balances increased support for Ukrainian trade and economic growth with the sensitivities of the EU's agricultural industry by adjusting the levels of Ukrainian market access for specific products.
2. Aligned production standards: An improvement in market access for Ukrainian goods is determined by Ukraine's gradually aligning its production standards with those of the EU, particularly in animal welfare, pesticide use and veterinary medicines.
3. A robust safeguard clause: A safeguard mechanism is in place to allow appropriate measures to be activated in the event that imports of products covered by the additional liberalization cause issues for either the EU or Ukraine.