Trump's Tariffs Face Challenge from Strength of the Single Market
The Center for European Policy (CEP) in Freiburg has issued a call for the accelerated integration of the European single market, citing the increasing barriers in global trade caused by the new US tariff regime and the persistent internal market barriers hampering economic integration in the EU [1].
In a study conducted in Frankfurt, CEP researchers Anja Hoffmann and Matthias Kullas have indicated that internal market barriers in goods trade are equivalent to a tariff of 45%, while for services, the figure is even higher at 110% [1]. These findings highlight the need for action to address these barriers and foster a more unified and efficient single market.
To achieve this, the CEP recommends several specific measures. Firstly, they propose more tax harmonization and coordination among member states to reduce distortions and enhance market integration. Secondly, they suggest simplifying compliance requirements by reducing bureaucratic hurdles and harmonizing regulatory procedures to facilitate smoother cross-border trade in goods and services [1].
While the CEP researchers have not specified the exact industries or sectors most affected by these internal market barriers, nor have they provided a timeline for the proposed accelerated integration, they maintain that the potential for integration is higher than the possible losses from US business [1].
However, the CEP's call for accelerated integration comes with no discussion of the potential political challenges or opposition to their proposal. Furthermore, the researchers have not discussed the potential economic consequences of further integrating the European single market beyond their stated potential benefits [1].
The new US tariff regime is causing increased barriers in global trade, and the CEP's call for accelerated integration is in response to these barriers. The European single market, which accounts for approximately 20% of global GDP, stands to benefit significantly from a more unified and efficient market [2].
In conclusion, the CEP's recommendations aim to address the internal market barriers that are hindering economic integration in the EU, fostering a more unified and efficient single market. While the exact timeline and strategies for achieving this integration remain uncertain, the CEP's call for action is a significant step towards addressing these barriers and promoting economic growth within the European Union.
References: [1] Center for European Policy (CEP) (2025). Policy analysis on accelerating economic harmonization within the European Union. Retrieved from [2] European Commission (2020). European single market. Retrieved from
- The CEP's policy analysis on accelerating economic harmonization within the European Union highlights the necessity for addressing internal market barriers, particularly in goods and services trade, which, interestingingly, are found to be equivalent to tariffs of 45% and 110%, respectively.
- In response to the increasing barriers in global trade caused by the new US tariff regime, the Center for European Policy (CEP) recommends measures such as tax harmonization, simplifying compliance requirements, and reducing bureaucratic hurdles to promote a more unified and efficient European single market.
- The potential for integration within the European Union, as proposed by the CEP, is significant, surpassing the possible losses from US business, despite the lack of discussion on the potential political challenges, opposition, or economic consequences of further integrating the single market.
