EU's Gloomy Reaction to New US Trade Deal: A Mixed Bag of Relief and Concerns

Tue Oct 21 2025 12:38:41 GMT+0300 (Eastern European Summer Time)

France and Germany express disappointment over the EU-US trade deal, highlighting potential economic repercussions while acknowledging the necessity of averting a trade war.

Leaders from France and Germany criticize the recently negotiated trade deal between the EU and the US, viewing it as detrimental to European economies despite recognizing its necessity to avoid escalated trade tensions.

Leaders from Europe's largest economies, Germany and France, are vocalizing their discontent with the newly established trade agreement between EU chief Ursula von der Leyen and US President Donald Trump. Chancellor Friedrich Merz of Germany expressed that the deal could severely "damage" Germany's finances, while French Prime Minister Francois Bayrou labeled it as an act of "submission." These sentiments reflect broader concerns across the European Union, though some leaders felt that an imperfect deal was preferable to risking a full-scale trade conflict.

Under the terms of the agreement, the EU will face a 15% tariff on most exports to the US, which is considerably lower than the tariffs initially threatened by Trump. In exchange, Europe is set to increase its purchases of American energy and reduce taxes on certain imports. Following discussions held at Trump's Turnberry golf resort in Scotland, von der Leyen promoted the agreement as a "huge deal," while Trump characterized it as a means to further bond the US and EU.

The ratification of this deal requires approval from all 27 EU member states, each with distinct priorities and varying degrees of dependency on exports to the US. While no country signaled intentions to obstruct the deal, enthusiasm remains low among European leaders. Merz pointed out that both US and European economies would face adverse effects, commenting that the Brussels negotiating team had little hope of securing a more favorable outcome against Trump's objectives.

Bayrou offered a more severe critique on social media, lamenting, "It is a dark day when an alliance of free peoples resigns itself to submission." Conversely, Hungarian Prime Minister Viktor Orban, a Trump supporter, claimed that Trump was able to outmaneuver von der Leyen during negotiations. Spanish Prime Minister Pedro Sanchez voiced his reluctant support for the deal.

However, some European leaders found solace in the completion of the agreement, which they believe will provide necessary stability. Finland's prime minister noted it will bring "much-needed predictability," while Irish Trade Minister Simon Harris emphasized its importance for job security and growth. EU Trade Commissioner Maros Sefcovic defended the deal as the "best under very difficult circumstances," pointing to the strategic necessity of maintaining strong relations with the US amid ongoing geopolitical tensions like the Ukraine conflict.

As the EU prepared for the final talks, discussions about potentially employing anti-coercion measures against the US were gaining traction among some European leaders. But facing the threat of much higher tariffs, the EU ultimately decided to compromise with the US.

Although von der Leyen aimed to herald the agreement as a success, even her political ally Manfred Weber later referred to it as "damage control." Initial responses from businesses in the US mirrored the sentiments in Europe, with the National Foreign Trade Council acknowledging that while avoiding a trade war is a positive step, the 15% tariff could lead to isolation and distrust in the longer term. The new deal preserves certain EU policies concerning digital regulations and pharmaceutical reimbursements, which have been sources of contention in previous discussions.