Discord in Europe: Trade Deal with US Draws Criticism from Leaders

The trade deal struck between the EU and the US has faced significant backlash from European leaders, particularly from Germany and France, who argue it undermines their national economies and promotes an uneven alliance.

Leaders from France and Germany have voiced strong criticism regarding the newly negotiated trade agreement between the EU and the US, brokered by EU chief Ursula von der Leyen and US President Donald Trump. German Chancellor Friedrich Merz characterized the deal as potentially devastating to Germany’s economic landscape, while French Prime Minister Francois Bayrou argued that it represents a form of capitulation.

Overall sentiment across EU capitals has been somber, reflecting concerns about accepting a deal perceived as slanted yet necessary to prevent a full-blown trade war. The agreement includes a 15% tariff on the majority of EU exports to the US—half of the initially proposed rate by Trump—in exchange for Europe committing to increase its purchase of American energy and reducing certain import taxes.

After closed-door discussions held at Trump's Turnberry golf resort in Scotland, von der Leyen hailed the agreement as a "huge deal," with Trump claiming it would strengthen ties between the US and EU. However, any optimism was tempered by the need for unanimous approval from all 27 EU member states, each with their unique economic dynamics and dependence levels on US exports. Despite no member country signaling intentions to veto the deal, the reaction from European leaders was far from celebratory.

Merz cautioned that both US and European economies would suffer, remarking that the EU negotiating team had limited leverage against a president known for his transactional approach to foreign relations. Bayrou was more critical, lamenting on social media that it was a "dark day" for an alliance meant to uphold shared values and interests.

Close Trump ally, Hungarian Prime Minister Viktor Orban, dismissed the EU's position, saying von der Leyen was outmatched. Meanwhile, Spanish Prime Minister Pedro Sanchez indicated his support for the deal but acknowledged his enthusiasm was lacking.

In the lead-up to the agreement, there had been a push among some European leaders to exert pressure on Trump using anti-coercion mechanisms aimed at limiting American companies' access to European markets. However, with the threat of 30% tariffs looming, the EU opted for compromise, resulting in an agreement that, while still painfully impacting economies, was less severe than initial fears indicated.

While von der Leyen initially framed the deal positively, by the following day, even Manfred Weber, leader of her European People's Party, classified it as a matter of "damage control." Although the main elements of the deal have been established, intricate details will need to be ironed out in subsequent technical discussions. For the most part, mixed reactions presented a dichotomy, reflecting some relief in Europe—Finland’s prime minister hailed it as a source of "much-needed predictability," whereas Ireland’s Trade Minister Simon Harris emphasized its importance for employment and investment.

In defending the arrangement at a press briefing, EU Trade Commissioner Maros Sefcovic maintained it was the "best deal we could achieve under challenging conditions." He also highlighted the strategic necessity of fostering amicable trade relations with the US, considering the ongoing geopolitical tensions stemming from the war in Ukraine, which comes with its own costs.