Multilateralism, rules-based trade &amp; the rule of law <i>v.</i> the EU-US trade relationship

<i>This article analyses how recent developments in the trade relationship between the European Union (EU) and the United States – particularly under President Trump’s second term – interact with the foundational principles of international customs law: multilateralism, rules-based trade and the rule of law. It argues that the current US trade policy represents a structural departure from these principles, characterized by the extensive use of unilateral import duties, broad interpretations of national security and emergency powers, and a declining commitment to multilateral dispute settlement. These developments have placed the transatlantic trade relationship under sustained pressure, culminating in a politically driven and legally fragile framework agreement concluded in July 2025. The article examines the content, legal qualification and World Trade Organization (WTO)-compatibility of this agreement and highlights the tensions created by selective tariff concessions and inconsistent adherence to most-favoured-nation (MFN) obligations. At the same time, the analysis recognizes that the EU is also increasingly deploying trade instruments with protectionist effects, including Carbon Border Adjustment Mechanism (CBAM) and EU Deforestation Regulation (EUDR), challenging its traditional role as a defender of multilateralism. The article concludes that safeguarding a rules-based trading system requires strategic restraint and continued commitment by the EU, even as global power dynamics shift and unilateral trade measures proliferate.<br/></i><br/><br/>