WIREDGOV

Hello, happy new year and welcome to the first Global Tech Trade Policy Update of 2026. 

What a start to the year it has been. If anyone hoped for a gentle reset, geopolitics had other ideas. Trade, security, and diplomacy are once again tightly intertwined, and the consequences for technology businesses are immediate, complex and often uncomfortable. 

At techUK, our focus remains practical: helping members understand what is happening, why it matters, and what it means for strategy, compliance and market access. If you are a techUK member and want to make sense of the world in 2026 - and what it means for you - please join our Trade Working Group this Friday 23 February with Scott Young from Eurasia Group. To register, email tess.newton@techuk.org. 

Here are the key developments to watch this week. 

1. EU weighs response to Trump’s tariff threats and prepares for an emergency summit 

The European Union will spend the coming week planning its response to U.S. President Donald Trump’s latest tariff threats, announced on Saturday. 

Options range from activating the EU’s Anti-Coercion Instrument - the so-called trade “bazooka” - to allowing retaliatory tariffs postponed last year to snap back into force. Others argue for restraint, given uncertainty over how far the White House will ultimately go and the implications of an imminent U.S. Supreme Court ruling. 

What is already clear: the EU will not implement its side of the current tariff bargain with Washington this week, including the liberalisation of industrial tariffs and selected agricultural quotas. 

French President Emmanuel Macron has urged the EU to trigger the Anti-Coercion Instrument in response to U.S. threats linked to Greenland, which could allow the bloc to impose restrictions on investment, public procurement access and intellectual property protections. 

EU ambassadors have already held emergency talks - and EU leaders will now also convene an emergency summit this coming week. 

2. EU-US trade deal put on hold after months of renewed friction 

The fallout is already visible in Brussels. 

EU lawmakers have confirmed they will not proceed with ratification of the EU-US trade deal signed last summer. The agreement, which capped U.S. tariffs at 15 percent in exchange for zero EU tariffs on U.S. exports, was meant to stabilise relations after months of renewed trade friction since Trump’s second term began. 

That fragile truce has now unravelled. 

Manfred Weber, president of the European People’s Party, said approval was no longer possible given Trump’s threats over Greenland, adding that the zero-tariff provisions must be put on hold. With the EPP now aligned with other political groups calling for a pause, the deal is effectively frozen. 

For businesses, this means continued uncertainty over tariffs, regulatory cooperation and long-term transatlantic trade stability. 

3. EU and Mercosur finally sign their trade agreement 

While transatlantic relations stall, the EU has moved decisively in Latin America. 

After more than 25 years of negotiations, the EU and Mercosur formally signed their free-trade agreement in Paraguay. If fully ratified, it would create a free-trade area covering more than 700 million people. 

More than 90 percent of tariffs on EU exports would be phased out over time, offering major opportunities for European industrial sectors. Mercosur countries would gain expanded access to EU agricultural markets under strict quota regimes. 

Commission President Ursula von der Leyen described the deal as a choice for fair, rules-based trade in a fragmenting global order. EU officials also see it as a strategic move to strengthen Europe’s position in Latin America amid rising Chinese influence and uncertainty in U.S. trade policy. 

Politically, however, the agreement remains contentious. France, Poland, Austria, Ireland and Hungary opposed it; Belgium abstained. The Commission secured backing only after pledging €45 billion in additional support for EU farmers. Ratification battles now lie ahead in the European Parliament and national legislatures. 

4. WTO MC14 – will you be in Yaoundé? 

A quick question for members: are you planning to attend the WTO 14th Ministerial Conference (MC14) in Yaoundé, Cameroon, from 26–29 March 2026? 

techUK can register up to four representatives under its NGO accreditation. Sabina Ciofu will attend on behalf of techUK, and there are three additional places available for members. 

MC14 is expected to focus in particular on: 

• The extension of the WTO Moratorium on Customs Duties on Electronic Transmissions; and 
• A roadmap for comprehensive WTO reform. 

If your organisation is interested in attending under the techUK banner, or would like to discuss this further, please let Sabina know by 26 February 2026 at sabina.ciofu@techuk.org. 

5. The digital exiles: opting out of the smartphone age 

For a change of pace and perhaps a moment of reflection, Coda Story explores why a growing number of people are abandoning their smartphones altogether, driven by concerns over surveillance, control and digital dependency.

After this week, it may resonate more than intended. 

And finally, perhaps the most succinct summary of the moment came from EU foreign policy chief Kaja Kallas: 

“Now may be the time to start drinking.” 

So much for Dry January when times are this crazy! 

We will also be keeping a close eye on Davos this week, where more of the ups and downs of geopolitics are likely to be on full display. 

Wishing everyone the very best for 2026 - resilience, perspective, and a year that, one hopes, eventually finds a steadier rhythm.