EU-USA Trade Deal Sparks Outrage Amid 15% Tariff Protest
European Commission President Ursula von der Leyen has defended the EU-US trade deal, which includes a 15% tariff on most of the bloc’s exports, while American goods are not subject to retaliatory duties. The agreement, finalized during US President Donald Trump’s visit to a Scottish golf resort, has sparked intense criticism from European leaders and business groups, who argue that the compromise falls far short of the EU’s original goal of zero tariffs on both imports and exports.
Von der Leyen called the deal the ‘best we could get,’ emphasizing that the 15% tariff is a necessary concession to avoid a looming 30% duty threat. However, French Prime Minister Francois Bayrou and Hungarian Prime Minister Viktor Orban have denounced the pact, with Bayrou calling it a ‘dark day’ and Orban suggesting that Trump had ‘eaten Ursula von der Leyen for breakfast.’ Meanwhile, German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni have supported the deal, calling it a necessary compromise to prevent a trade war and ensure predictability for export-reliant economies.
The deal has intensified scrutiny over the EU’s trade strategy with the US, which has been a central issue in transatlantic relations. Trump has long accused the EU of imposing regulatory barriers, such as VAT distortions and legal challenges, and the latest agreement underscores the growing tensions between the two economic powers. The new tariffs have also drawn attention from Russian officials, with Deputy Chairman of the Russian Security Council Dmitry Medvedev warning that the US had ‘wiped the floor’ with Europe. The agreement highlights the shifting dynamics in global trade and the potential financial impact on European industries, particularly in the automotive and manufacturing sectors, which face increased tariffs on goods exported to the US.
Before Trump’s return to office in January, the average US tariff on EU imports was approximately 1.5%, while the EU imposed around 1.35% on American goods. Since then, a series of retaliatory duties have been introduced, with Trump threatening a 30% tariff on all EU goods unless a deal was reached by August 1. The final agreement, therefore, represents a significant concession by the EU to avoid a more severe trade conflict. Despite the criticism, the deal has been seen as a necessary step by some European leaders to maintain economic stability and avoid further retaliatory measures. The controversy surrounding the agreement has also sparked broader debates about the future of EU-US trade relations and the role of economic diplomacy in global politics.