Leaders from Europe’s two largest economies have voiced strong disapproval of the trade agreement brokered between EU Commission President Ursula von der Leyen and U.S. President Donald Trump.
German Chancellor Friedrich Merz stated the accord would “substantially damage” his nation’s financial standing, while French Prime Minister Francois Bayrou characterized it as a form of “submission.”
Across the European Union, reactions have been largely negative, although several capitals acknowledged the acceptance of an imbalanced agreement was preferable to an all-out trade war.
The deal entails a 15% tariff on the majority of EU exports to the U.S.—half the rate initially threatened by Trump—in exchange for Europe’s increased purchase of American energy and the reduction of taxes on certain imports.
Following private discussions at Trump’s Turnberry golf resort in Scotland, von der Leyen hailed the agreement as a “huge deal,” while Trump suggested it would foster “closer ties” between the U.S. and the EU.
The agreement requires the approval of all 27 EU member states, each possessing unique interests and varying degrees of dependence on exports to the U.S.
While no member state has signaled an intention to block its enactment, there has been little enthusiasm displayed by European leaders.
Merz cautioned that both the U.S. and European economies would be negatively affected, but also noted that the Brussels negotiating team “could not have expected to achieve more” against a U.S. president determined to reshape relationships with key trading partners.
Bayrou offered a more critical assessment, stating on X: “It is a somber day when an alliance of free nations, united to uphold shared values and defend common interests, resigns itself to submission.”
Hungarian Prime Minister Viktor Orban, a close ally of Trump, remarked that the U.S. president “ate von der Leyen for breakfast.”
Spanish Prime Minister Pedro Sanchez indicated he would support the agreement “without enthusiasm.”
Nevertheless, there was a sense of relief in Europe that a deal had been reached.
Finland’s prime minister suggested it would provide “much-needed predictability,” while Irish Trade Minister Simon Harris stated it brought the certainty “essential for jobs, growth, and investment.”
Defending the terms at a press conference on Monday, EU Trade Commissioner Maros Sefcovic said it was the “best deal we could get under very difficult circumstances.”
He also emphasized the security implications of maintaining positive trade relations with the U.S. in light of the Ukraine conflict.
Ensuring that Europe and the U.S. were “aligned on the geopolitical issues of today,” he said, came with “an additional price.”
In the lead-up to the final EU-U.S. talks, some European leaders had expressed a growing desire to increase pressure on Trump through anti-coercion measures, which would have restricted U.S. firms’ access to European markets.
However, with 30% tariffs looming, the EU negotiated a deal on behalf of its members—one that will still inflict economic damage, but less severe than initially feared when Trump threatened import taxes.
Von der Leyen sought to present the deal as a success on Sunday, but by Monday, even the leader of her European People’s Party, Manfred Weber, described it as “damage control.”
While the broad framework of the deal has been agreed, the specific details will be finalized following technical discussions.
Initial business reactions on both sides of the Atlantic were similarly muted. The National Foreign Trade Council, based in Washington D.C., stated that any agreement that averted a trade war was “welcome progress.”
However, it cautioned that any “short term gains” from a 15% tariff could ultimately leave the U.S. “isolated from a major ally and erode trust long term.”
The previous tariff-free system, it said, had enabled industries such as aerospace and pharmaceuticals to prosper “on both sides.”
The initial deal framework “leaves in place a number of troubling EU policies,” it said, including what it termed a “discriminatory digital agenda” and “unfair pharmaceutical reimbursement policies.”
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