Political leaders across Europe are reacting cautiously to the recent trade agreement between the EU and the US, highlighting concerns over economic impacts and strategic submissions.
**EU Leaders Express Major Concerns Over US Trade Agreement**
**EU Leaders Express Major Concerns Over US Trade Agreement**
France and Germany voice skepticism in the wake of EU-US trade deal negotiations.
In a recent development, leaders from France and Germany have expressed significant apprehension regarding the trade agreement reached between EU chief Ursula von der Leyen and US President Donald Trump. German Chancellor Friedrich Merz emphasized that the deal could "substantially damage" the financial landscape of Germany, while French Prime Minister Francois Bayrou characterized the agreement as a form of "submission" to American interests.
This sentiment of unease resonates throughout the European Union, with many countries recognizing the necessity of the agreement to prevent an all-out trade war, despite its perceived inequities. The deal imposes a 15% tariff on a majority of EU exports to the US—half of what Trump had previously threatened—while ensuring that Europe increases its importation of American energy and reduces taxes on select imports.
The discussions occurred at Trump's Turnberry golf resort in Scotland, where von der Leyen announced the deal as a "huge success." Trump remarked that it would bring the US and EU "closer together." However, the agreement now awaits approval from all 27 EU member states, each with its own economic dependencies on US exports.
Despite no indications of any member state planning to block the agreement, the reaction from European leaders has been far from celebratory. Merz warned that both economies could suffer, highlighting the challenges faced by the Brussels team in negotiations with a US president intent on redressing trade balances. Bayrou expressed a similar sentiment, lamenting a "dark day" for an alliance of nations that profess to share common values.
Closer to the ground, Hungarian Prime Minister Viktor Orban, a Trump ally, quipped about the outcome of the meeting, and Spanish Prime Minister Pedro Sanchez indicated lukewarm support for the deal. Yet, some leaders like Finland's Prime Minister welcomed the predictability the deal would bring, with Irish Trade Minister Simon Harris noting its essential role for jobs and investment.
EU Trade Commissioner Maros Sefcovic defended the terms at a press briefing, asserting it was the "best deal we could get under very difficult circumstances." He pointed out the necessity of strong trade relations with the US amid geopolitical tensions related to the Ukraine conflict.
Before finalizing this deal, there had been discussions among European leaders to escalate pressure on Trump through anti-coercion measures aimed at limiting US firms' access to EU markets. Yet, the looming threat of harsher tariffs prompted the EU to negotiate a more palatable arrangement, even if it still constitutes an economic hardship.
Even as von der Leyen positioned the trade deal as a triumph, Manfred Weber, the leader of her European People's Party, later referred to it as merely "damage control." While the general framework of the deal is agreed upon, the particulars will be negotiated in subsequent technical discussions.
The business perspective across the Atlantic has been similarly sobering, with the National Foreign Trade Council acknowledging the deal as a welcome step in avoiding a trade war, while cautioning that short-term benefits may ultimately lead to long-term isolation for the US from a key ally. They emphasized that the previous tariff-free model had allowed various industries to flourish on both sides of the Atlantic, questioning the long-term sustainability of current policies. The situation continues to unfold as the specifics of the agreement are solidified.
