The US-EUU trade deal was sealed on Sunday after almost four months tariff uncertainty by European governments and firms.
Markets reacted positively: Shares in European vehicle manufacturers jumped up to 3% in Monday’s opening, while comprehensive European Union’s stock index reached a height of four months. European bond yields collapsed, indicating investor optimism that the transatlantic trade tension could decrease.
Under the agreement, a 15% US tariff will be imposed on most exports from the European Union, and the block will make the US an investment of € 514 billion ($ 600 billion) – its largest trading partner. Tatiffs on some areas are yet to be finalized
While the new 15% rate is less severe than the 25% tariff imposed on European vehicle manufacturers in April and the earlier 30% levy for 1 August, it still represents a rapid increase from 2.5% duty before the start of US President Donald Trump.
Leyen’s European Commission Chairman Ursula told reporters that the new tariff rate was “a good deal,” adding it would return to “stability” and “prediction” transatlantic business. However, he warned that “15% cannot be underestimated, but it is best that we can get.”
German Chancellor Frederick Merz echoed that feeling, “protecting our main interests” and “a means of avoiding” to avoid unnecessary growth in transatlantic trade relations. Nevertheless, he accepted disappointment on the result, sting, “I wished for further relief.”
European Union criticized the ‘condemnable’ deal
While the European Union policy makers stated that they were ready to interact with Harshar Tafs to Trump, many European political and business leaders have chosen a new deal as a loss for a 27 -member block. The origin of the European Union had 10% tariff.
Hungary Prime Minister Victor Orban offered a cutting criticism during a Facebook Livestream, stating: “Trump ate Ursula von Der Leyen for breakfast, saying that the deal is” worse “compared to one made by the United Kingdom in May.
Under that deal, most British exports still face a blanket 10% of American tariffs, while economists have warned the lack of US-UK agreement and have been made pharmaceuticals such as pharmaceuticals and agriculture.
French Prime Minister Francois Bayoro resigned to present the deal to the European Union, “Laming,” EU, “EU,” to confirm their general values and protect their common interests, resign itself to present. “
Former high profile European legalist Gai Verhofasted, meanwhile, labeled the deal “condemnable” and a “disaster”. In comments on X, he reduced the lacquer of “a single concession from the American side” and criticized the “poor conversation” approach of the European Union.
German MEP Bernad Lang, who presided over the European Parliament’s Trade Committee, wrote on X that the deal was “loped” and Brussels gave concessions that were “difficult to accept”.
French entrepreneur Arnoud Bertrand called the deal “one-way transfer of money”, saying that “it appears to be the type of uneven trees of this type, which colonial powers used to impose in the 19th century, at this time, at the end of Europe.”
Ruben Staffa, a foreign trade expert at the German Institute for Economic Research (DIW Berlin), said the deal “has an average increase in the average tafs to implement before Trump’s second term.”
What are positive for the European Union?
The European Union has faced a full -scale trade war that can severely disrupt business confidence and consumer expenses on both sides of the Atlantic.
In anticipation of Stator US Tafs, Brussels prepared € 72 billion in retaliation on American imports, including targeting aircraft and automobiles.
Additional options allegedly included export restrictions on some steel and chemical products, as well as potential steps against US services – especially in Big Tech and Finance – where the US holds € 109 billion business surplus with the European Union.
Away from the ideal, the agreement is expected to be lighter relative to the economic impact of the agreement. Citing data from Kail Institute for the World Economy (IFW), German Business Daily Handblatt It was reported on Monday that Tales means 0.1% hits for the European Union GDP (GDP).
This is much lower than last year’s Goldman Sachs estimate, which is estimated to have a GDP deduction of up to 1% in the position of 10% US Taraf.
Some fields stand for profit. Bloomberg Intelligence promoted € 4 in earnings for the European Auto sector, thanks to a reduction in vehicle tetf by 27.5%.
However, German firms are loaded for sufficient cost: Handblatt It is estimated that the new levy wants them to be a burden with € 6.5 billion in additional expenses.
What would Brussels have done better?
Despite avoiding a trade war, Brussels have faced criticism to fail to extract more concessions than Washington.
The analyst argues that the European Union recalled important opportunities to secure mutual taff cuts on high-value European export-rich liquor, spirits and luxury goods.
Some suggested that banning American tech veterans and financial institutions may put pressure on Trump to reduce the tetf on auto and pharmaceuticals.
Critics pointed to Brussels to an early comeback from their retaliatory tafs, which they say that the block of the block interaction.
Others note that the European Union leaders failed to capitalize on American domestic politics – discovering as an encouraged to target exports from Republican Stronggolds or encourage American companies to advocate the Trump administration from within.
The internal division between the European Union member states, especially from Hungary, carried forward the position of Brussels.
Mauhile, Trump’s unpredictable strategy and aggressive tapiff threats placed the European Union negotiaters on the back leg through negotiations.
what happens next?
The deal is an initial outline rather than a comprehensive agree. In the coming months, Brussels and Washington dialogues will draft a detailed text and set a date for taking 15%.
Given the track records of the last minute demands of Trump, as seen in the US-Japan trade talks, the European Union will have to brace for possible amendments.
The deal requires approval from the European Union member states and an inquiry from the European Parliament, a process is likely to spread for several weeks.
The Mauhile, the Trump administration, faced nearly a dozen cases challenging the validity of its tariff policy, arguing that Trump is unilaterally imposing Congress. Can any of these suk trees be reduced to zero, fresh conversation can be triggered.
The major region-specific levies remain unresolved. Brussels are still insisting on exemption on alcohol and souls – especially important for France and Italy. Lower rates on pharmaceuticals and semiconductors are under discussion.
Finally, the European Union pledge to reduce nontagreiff barriers – find as regulatory complications and VAT obstacles – will require careful interaction to ensure alignment with the existing European Union standards.
Edited by: Uwer Hessler
