Article text:
Leaders from France and Germany have made their discontent clear regarding the newly established trade deal between the EU and the US. German Chancellor Friedrich Merz expressed that the agreement could "substantially damage" Germany's economy, while French Prime Minister Francois Bayrou characterized the deal as an act of "submission."
The overall sentiment across the EU remains downcast, with many acknowledging that signing an unequal agreement may have been necessary to avoid a looming trade war. The deal establishes a 15% tariff on most EU exports to the US, significantly lower than the 30% previously threatened by former President Trump, in exchange for increased European purchases of American energy and reduced taxes on certain imports.
The trade negotiations culminated after private discussions at Trump's Turnberry golf course in Scotland, where EU chief Ursula von der Leyen hailed the outcome as a "huge deal." President Trump stated that it would enhance relations between the US and the EU. However, the agreement now requires approval from all 27 EU member states, each having varying degrees of interest in the US market.
European leaders have been cautious, as Merz pointed out that both American and European economies might suffer as a result. He acknowledged that the Brussels negotiation team had little leverage against a US president intent on redefining trade relationships. Bayrou, in a critical tweet, lamented that it was a "dark day" for an alliance built on shared values.
Hungarian Prime Minister Viktor Orban, a Trump ally, derided the deal, suggesting von der Leyen was easily dominated by Trump. Meanwhile, Spanish Prime Minister Pedro Sanchez conveyed tepid support for the arrangement.
While some European leaders expressed relief that a deal had been reached, Finnish Prime Minister stressed the necessity for "predictability." Irish Trade Minister Simon Harris echoed this sentiment, highlighting the deal's importance for jobs and investment.
In defense of the trade agreement, EU trade commissioner Maros Sefcovic labeled it the "best deal we could get under very difficult circumstances," emphasizing the security implications highlighted by the ongoing Ukraine conflict. Sefcovic noted that maintaining favorable trade relations with the US comes at a cost.
As the talks progressed towards a final agreement, there had been discussions among EU leadership about imposing anti-coercion measures against the US. Ultimately, the EU opted for a deal that mitigated the economic impacts, albeit without meeting all expectations.
Despite von der Leyen's attempts to frame the deal positively, even her political ally, Manfred Weber, referred to it as "damage control." While the preliminary framework has been established, specific details will be finalized in upcoming discussions.
Initial responses to the deal from business groups in the US have been similarly restrained. The National Foreign Trade Council acknowledged the avoidance of an outright trade war as a positive step forward. However, it cautioned that short-term benefits from the trade agreement might lead to long-term repercussions, including potential isolation of the US from a critical partner in economic collaboration. The previous tariff-free environment had significantly benefited industries on both sides of the Atlantic. The framework allowed certain controversial European policies to remain intact, such as those regarding digital commerce and pharmaceutical reimbursement practices.
Leaders from France and Germany have made their discontent clear regarding the newly established trade deal between the EU and the US. German Chancellor Friedrich Merz expressed that the agreement could "substantially damage" Germany's economy, while French Prime Minister Francois Bayrou characterized the deal as an act of "submission."
The overall sentiment across the EU remains downcast, with many acknowledging that signing an unequal agreement may have been necessary to avoid a looming trade war. The deal establishes a 15% tariff on most EU exports to the US, significantly lower than the 30% previously threatened by former President Trump, in exchange for increased European purchases of American energy and reduced taxes on certain imports.
The trade negotiations culminated after private discussions at Trump's Turnberry golf course in Scotland, where EU chief Ursula von der Leyen hailed the outcome as a "huge deal." President Trump stated that it would enhance relations between the US and the EU. However, the agreement now requires approval from all 27 EU member states, each having varying degrees of interest in the US market.
European leaders have been cautious, as Merz pointed out that both American and European economies might suffer as a result. He acknowledged that the Brussels negotiation team had little leverage against a US president intent on redefining trade relationships. Bayrou, in a critical tweet, lamented that it was a "dark day" for an alliance built on shared values.
Hungarian Prime Minister Viktor Orban, a Trump ally, derided the deal, suggesting von der Leyen was easily dominated by Trump. Meanwhile, Spanish Prime Minister Pedro Sanchez conveyed tepid support for the arrangement.
While some European leaders expressed relief that a deal had been reached, Finnish Prime Minister stressed the necessity for "predictability." Irish Trade Minister Simon Harris echoed this sentiment, highlighting the deal's importance for jobs and investment.
In defense of the trade agreement, EU trade commissioner Maros Sefcovic labeled it the "best deal we could get under very difficult circumstances," emphasizing the security implications highlighted by the ongoing Ukraine conflict. Sefcovic noted that maintaining favorable trade relations with the US comes at a cost.
As the talks progressed towards a final agreement, there had been discussions among EU leadership about imposing anti-coercion measures against the US. Ultimately, the EU opted for a deal that mitigated the economic impacts, albeit without meeting all expectations.
Despite von der Leyen's attempts to frame the deal positively, even her political ally, Manfred Weber, referred to it as "damage control." While the preliminary framework has been established, specific details will be finalized in upcoming discussions.
Initial responses to the deal from business groups in the US have been similarly restrained. The National Foreign Trade Council acknowledged the avoidance of an outright trade war as a positive step forward. However, it cautioned that short-term benefits from the trade agreement might lead to long-term repercussions, including potential isolation of the US from a critical partner in economic collaboration. The previous tariff-free environment had significantly benefited industries on both sides of the Atlantic. The framework allowed certain controversial European policies to remain intact, such as those regarding digital commerce and pharmaceutical reimbursement practices.