Leaders from France and Germany express dissatisfaction with the recent trade agreement between the EU and the US, highlighting its potential negative impact on their economies while acknowledging the need to avoid a full-blown trade war.
### Gloomy EU Response as France and Germany Critique New US Trade Agreement
### Gloomy EU Response as France and Germany Critique New US Trade Agreement
European leaders voice concerns over US trade deal, fearing economic repercussions.
The news of a newly signed trade agreement between EU chief Ursula von der Leyen and US President Donald Trump has been met with considerable skepticism from some of the leading figures in European politics. German Chancellor Friedrich Merz led the charge of disapproval, claiming the deal would "substantially damage" Germany's finances. Meanwhile, French Prime Minister Francois Bayrou voiced similar concerns, deeming the agreement a form of "submission" to US demands.
Despite the mixed feelings permeating the EU, the deal—which includes a 15% tariff on most EU exports to the US, a much lower rate than previously threatened—was seen as a necessary step to avert a complete trade war. The agreement also involves the EU committing to increased purchases of American energy and reducing taxes on certain imports. Following meetings at Trump's Turnberry golf resort, both leaders touted the potential benefits, with von der Leyen characterizing it as a "huge deal" that would foster closer ties between the US and the EU.
However, the reception of the deal among the remaining EU member states has been lukewarm at best. While no country indicated plans to reject the deal outright, concerns over its uneven nature were prevalent. Leaders such as Hungarian Prime Minister Viktor Orban made light of the situation, suggesting von der Leyen was bested in negotiations by Trump, while Spanish Prime Minister Pedro Sanchez offered tepid support.
In the wake of the agreement, some nations expressed relief. Finland's Prime Minister acknowledged the predictability the deal provides, and Irish Trade Minister Simon Harris highlighted its importance for job security and economic growth. However, EU Trade Commissioner Maros Sefcovic defended the agreement's terms, indicating it was the "best deal we could get under very difficult circumstances," particularly in light of the ongoing geopolitical tensions due to the Ukraine war.
As discussions leading up to the finalization of the deal had included proposals for anti-coercion measures that could have restricted US firms' access to European markets, the EU ultimately settled on a deal designed to limit prospective economic damage. However, the agreement’s outline must still undergo technical discussions to finalize its details.
Initial reactions from business sectors in the US painted a similarly muted picture. The National Foreign Trade Council commented that while avoiding a trade war is a positive outcome, the short-term advantages of a 15% tariff might not outweigh the long-term implications of potentially isolating a key ally. The council noted that the prior tariff-free environment had been beneficial for industries on both sides, and expressed concern over ongoing EU policies that could complicate future trade relations.
As the agreement is scheduled for further refinement in the coming weeks, its reception within the EU highlights a broader trepidation about the implications of international trade dynamics under the current US administration.
Despite the mixed feelings permeating the EU, the deal—which includes a 15% tariff on most EU exports to the US, a much lower rate than previously threatened—was seen as a necessary step to avert a complete trade war. The agreement also involves the EU committing to increased purchases of American energy and reducing taxes on certain imports. Following meetings at Trump's Turnberry golf resort, both leaders touted the potential benefits, with von der Leyen characterizing it as a "huge deal" that would foster closer ties between the US and the EU.
However, the reception of the deal among the remaining EU member states has been lukewarm at best. While no country indicated plans to reject the deal outright, concerns over its uneven nature were prevalent. Leaders such as Hungarian Prime Minister Viktor Orban made light of the situation, suggesting von der Leyen was bested in negotiations by Trump, while Spanish Prime Minister Pedro Sanchez offered tepid support.
In the wake of the agreement, some nations expressed relief. Finland's Prime Minister acknowledged the predictability the deal provides, and Irish Trade Minister Simon Harris highlighted its importance for job security and economic growth. However, EU Trade Commissioner Maros Sefcovic defended the agreement's terms, indicating it was the "best deal we could get under very difficult circumstances," particularly in light of the ongoing geopolitical tensions due to the Ukraine war.
As discussions leading up to the finalization of the deal had included proposals for anti-coercion measures that could have restricted US firms' access to European markets, the EU ultimately settled on a deal designed to limit prospective economic damage. However, the agreement’s outline must still undergo technical discussions to finalize its details.
Initial reactions from business sectors in the US painted a similarly muted picture. The National Foreign Trade Council commented that while avoiding a trade war is a positive outcome, the short-term advantages of a 15% tariff might not outweigh the long-term implications of potentially isolating a key ally. The council noted that the prior tariff-free environment had been beneficial for industries on both sides, and expressed concern over ongoing EU policies that could complicate future trade relations.
As the agreement is scheduled for further refinement in the coming weeks, its reception within the EU highlights a broader trepidation about the implications of international trade dynamics under the current US administration.
