European leaders have reacted with dismay to the recently struck trade deal between EU chief Ursula von der Leyen and US President Donald Trump, revealing concerns about its potential negative impact on their economies. German Chancellor Friedrich Merz voiced his apprehensions, stating that the agreement would "substantially damage" Germany's financial prospects. Meanwhile, French Prime Minister Francois Bayrou described the arrangement as an act of "submission," reflecting a sentiment of disappointment that echoed through the bloc.
The deal involves a 15% tariff on numerous EU exports to the US—half of what Trump initially proposed. In exchange, Europe agrees to purchase more American energy and cut taxes on select imports. The agreement, ultimately needing approval from all 27 EU member states, sparked a consensus that securing a deal, even an uneven one, was a necessary move to prevent an all-out trade war.
Despite a lack of clear opposition to the agreement among EU states, there was little enthusiasm in the responses from European leaders. Merz cautioned that both US and European economies would suffer, attributing this to a US president intent on reshaping trading relationships. Bayrou articulated a more severe critique on social media, lamenting the loss of unity among free peoples when faced with such compromises.
Spanish Prime Minister Pedro Sanchez expressed lukewarm support for the deal, echoing a feeling of reluctance shared by others, despite the looming threat of 30% tariffs prior to negotiations that ultimately led to this agreement. While von der Leyen aimed to promote the deal as a significant achievement, even her party leader, Manfred Weber, regarded it as merely "damage control."
Technical discussions will finalize specific details after the broad outline has been agreed upon, and while skepticism remains, there was also relief expressed by some leaders, emphasizing the need for predictability for jobs and investments. Finland’s prime minister pointed to the necessity for stability, while Ireland’s Trade Minister voiced appreciation for the certainty the agreement provides in a turbulent economic climate.
EU trade commissioner Maros Sefcovic defended the terms of the deal, stressing it was the best outcome possible given the difficulties faced. He highlighted the importance of maintaining strong trade relations with the US in light of global security challenges, including the ongoing Ukraine war, suggesting that alignment on such geopolitical matters incurs a “price,” further complicating the trade dynamics between these economic powerhouses.
