European leaders are expressing strong reservations regarding the recently negotiated trade deal between the EU and the U.S. Following discussions between EU chief Ursula von der Leyen and President Donald Trump, the agreement imposes a 15% tariff on most EU exports to the U.S., which is a reduction from the originally threatened 30%.
German Chancellor Friedrich Merz described the deal as potentially damaging to Germany’s economy, while French Prime Minister Francois Bayrou criticized it as a sign of Europe's "submission." Despite the gloomy outlook, many EU capitals recognized that signing the deal was necessary to prevent an escalating trade war.
The agreement includes Europe increasing its purchases of U.S. energy and reducing taxes on some imports. While no member state is expected to block the deal, which requires approval from all 27 EU members, the mood remains subdued among European leaders.
Some, like Hungarian Prime Minister Viktor Orban, praised the outcome, while Spanish PM Pedro Sanchez offered cautious support. Finnish and Irish leaders highlighted the deal’s importance for economic predictability and job security. However, the EU's trade commissioner, Maros Sefcovic, emphasized the difficult circumstances of negotiations, balancing economic needs with geopolitical alignments in light of the Ukraine war.
As the EU reflects on this trade agreement, business reactions in the U.S. suggest a similar lack of enthusiasm, warning about long-term ramifications. The deal, while offering temporary relief, is viewed with skepticism over its potential to isolate the U.S. from its European ally in the future.
