When the U.S. and European Union—which together account for nearly a third of global trade—unveiled a compromise on import tariffs this week, the global trade community held its breath. The headline: a 15% duty on most EU goods, effective next month. It’s half of the 30% rate once looming, yet far above the 2.5% average Europeans currently pay.
Relief and Reservations
German Chancellor Friedrich Merz praised the deal for sidestepping a potential trade war that could have crippled its export-driven economy. EU Trade Commissioner Maros Sefcovic agreed: "Under these tough conditions, this is the best outcome we could secure."
But not everyone shares the optimism. France’s Prime Minister Francois Bayrou called it a “dark day,” decrying what he sees as Europe’s submission. Portugal’s Ministry of Economy warned that true free trade can’t be replaced by limited improvements, prompting Lisbon to offer support packages for local exporters.
Sharp Debates in Brussels
Hungarian Prime Minister Viktor Orban was scathing, quipping that U.S. President Trump “ate” EU Commission President Ursula von der Leyen “for breakfast.” Behind the jabs lies a common worry: will these higher tariffs squeeze European manufacturers and undermine long-term growth?
Next Steps
The framework deal still needs fine-tuning. EU officials have promised detailed guidelines by August 1, with follow-up talks to clarify protections for key sectors like steel, automobiles and pharmaceuticals. Both sides say strategic purchases—worth up to $750 billion in energy and nuclear fuel—will cement the transatlantic bond, but questions linger on how Europe will meet those targets as U.S. LNG output races ahead.
As the dust settles, one thing is clear: the U.S.-EU tariff deal trading calm for caution is only the beginning of a much longer negotiation—one that could reshape how billions of dollars in goods cross the Atlantic for years to come.
Reference(s):
cgtn.com
