EU hits back

Hi ZipLawyer! Today’s Memo:

🇪🇺 EU hits back at Trump
🚗 Northvolt goes bankrupt
💸 OKX Crypto breaches
🏘️ Jones Day, Travers head on REIT deal
🇫🇷 Quinn, Reed Smith lead on insurance claim
🙋 What is an APA?

Fight Back

The EU is firing back at Donald Trump’s 25% tariffs on steel and aluminium, slapping $26 billion (€26bn) in retaliatory duties on US steel, aluminium, textiles, home appliances, and agricultural goods starting 1 April. European Commission President Ursula von der Leyen blasted the move, calling tariffs “bad for business and even worse for consumers,” while stressing the EU’s willingness to negotiate. Meanwhile, the UK is holding off on retaliation, opting instead to pursue a broader economic deal with Washington. With neither side backing down, the trade war is heating up fast.

How does this impact Law Firms?

International Trade: The EU’s retaliatory tariffs will create significant legal work for trade lawyers as businesses seek to navigate new levies, challenge unfair duties, and apply for tariff exemptions. Companies facing sudden cost increases will need guidance on restructuring supply chains and dispute resolution mechanisms. Lawyers will assist US agricultural exporters in filing for tariff exemptions under EU trade regulations, arguing that certain perishable goods should be excluded to prevent excessive market disruption.

Regulatory: As the UK diverges from the EU’s approach, opting for negotiations over retaliation, businesses will require legal advice on regulatory strategies and trade policy advocacy. Lawyers will work with industry groups and policymakers to influence trade negotiations. Lawyers will advise UK steel manufacturers on lobbying efforts to secure preferential trade terms in a future UK-US economic agreement, ensuring continued access to the US market despite ongoing tensions.

Corporate & Commercial: Tariff increases on key industrial and consumer goods will force companies to renegotiate supply contracts and explore alternative sourcing arrangements. Legal teams will need to update agreements to account for price fluctuations and potential future tariff hikes. Lawyers will assist European home appliance manufacturers in restructuring long-term US distribution contracts, incorporating tariff pass-through clauses that allow them to adjust pricing based on fluctuating trade duties.

Out of Battery

Northvolt, once hailed as Europe’s best shot at competing in the battery industry dominated by China, has filed for bankruptcy in Sweden, after failing to secure financing. Backed by Volkswagen, Goldman Sachs, and BlackRock, the company had raised $15 billion but couldn’t sustain operations. A court-appointed trustee will now sell off its assets, marking a stunning collapse for a startup meant to drive Europe’s EV transition. Interim chair Tom Johnstone called it an “incredibly difficult day” (pretty much my response after I got 5 TC rejections in one day). Europe's race to catch up with China, Japan, and South Korea in EV battery production has now taken a major hit.

Crypto Troubles

European regulators are probing whether OKX’s Web3 platform breached MiCA crypto rules after North Korean hackers allegedly laundered $100 million through the exchange following a $1.5 billion Bybit hack. The European Securities and Markets Authority (ESMA) and national regulators are debating OKX’s regulatory status, with Austria and Croatia calling for tougher enforcement. If found non-compliant, OKX could face sanctions or even lose its EU license. Meanwhile, Malta’s financial watchdog, which granted OKX its MiCA approval, is holding talks with the exchange but hasn’t committed to action. The probe comes just weeks after OKX was slapped with a $504 million U.S. fine for unlicensed transactions.

The REIT Deal