EU-US Trade Deal Sparks Mixed Reactions Across Europe

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In a bold yet controversial move, EU Commission President Ursula von der Leyen and US President Donald Trump have struck a major trade agreement, one that’s already making waves across European capitals. While the deal claims to soften tensions, leaders from Europe’s biggest economies aren’t exactly throwing a party.

Germany’s Chancellor Friedrich Merz was blunt, warning the agreement could “substantially damage” Germany’s finances. France’s Prime Minister Francois Bayrou went further, slamming the deal as “submission.” Their remarks highlight just how divisive this compromise is among European powerhouses, even if it successfully dodged a full-blown trade war.

A Fragile Truce to Avoid a Trade Meltdown

The core of the deal? A 15% tariff on most EU exports to the US—far better than the originally proposed 30%—in exchange for Europe agreeing to import more American energy and lowering taxes on selected US imports. On paper, that looks like a diplomatic success.

However, behind closed doors, it’s clear that this was more about damage control than genuine enthusiasm. The two leaders finalized the agreement during private talks at Trump’s Turnberry golf course in Scotland. Von der Leyen called it a “huge deal,” and Trump praised it for bringing the US and EU “closer together.”

Yet the reality in Brussels tells a more somber story. All 27 EU member states must approve the deal, and although none plan to block it, there’s hardly a celebratory mood. Leaders appear more relieved than reassured.

Leaders React: From Grim Acceptance to Bitter Criticism

German Chancellor Merz acknowledged the agreement was probably the best the EU could do under such pressure, noting that the Brussels team “couldn’t expect to achieve any more” when facing a US president determined to rewrite trade rules.

France’s Bayrou, however, wasn’t in a forgiving mood. On X (formerly Twitter), he wrote: “It is a dark day when an alliance of free peoples...resigns itself to submission.” That quote alone encapsulates the disappointment felt across much of the bloc.

Hungary’s Prime Minister Viktor Orban—often one of Trump’s strongest allies in Europe—offered a blunt and sardonic take, claiming Trump “ate von der Leyen for breakfast.” Spain’s Pedro Sanchez didn’t sugarcoat his stance either, saying he would support the deal “without any enthusiasm.”

And yet, not all leaders were completely cynical. Finland’s prime minister described the agreement as bringing “much-needed predictability,” while Ireland’s trade minister Simon Harris noted that it restored the kind of certainty crucial “for jobs, growth and investment.”

Balancing Diplomacy with Economic Costs

At Monday’s press conference, EU Trade Commissioner Maros Sefcovic defended the deal as “the best deal we could get under very difficult circumstances.” He stressed the geopolitical context, especially with the war in Ukraine ongoing. Keeping US-EU relations warm, he argued, comes with its own cost—but one that might be worth paying for broader global stability.

Sefcovic added that staying “aligned on the geopolitical issues of today” with the US means accepting certain trade-offs. In essence, this deal wasn’t just about tariffs—it was about keeping a fragile alliance intact during uncertain times.

Interestingly, in the weeks leading up to the final negotiations, there were murmurs within the EU about going harder against the US. Some leaders floated the idea of activating so-called “anti-coercion” measures that could block American companies from entering European markets.

But with 30% tariffs looming large, the EU blinked first. Instead of a dramatic standoff, they struck a deal that’s economically painful—but far less disastrous than it could have been.

Business Voices: Wary Optimism, Cautious Praise

On the other side of the Atlantic, business groups weren’t celebrating either. The National Foreign Trade Council in Washington D.C. said the deal was a “welcome progress” simply because it averted a trade war. But that was about as far as the praise went.

The Council warned that even a 15% tariff—while better than 30%—could lead to long-term isolation for the US and slowly erode trust with a key ally. They emphasized that the old tariff-free regime had enabled critical industries like aerospace and pharmaceuticals to flourish “on both sides.”

Moreover, they took issue with EU policies that remain untouched. These include what they called a “discriminatory digital agenda” and “unfair pharmaceutical reimbursement policies.” In other words, the fight might be paused, but it’s far from over.

What Happens Next?

While the high-level framework is agreed upon, the technical details are still being worked out. It’s clear the deal won’t roll out overnight. Every EU country must ratify it, and you can bet domestic debates will follow—some louder than others.

This isn’t the sweeping victory Trump or von der Leyen might have hoped to present. It's more like a temporary fix: one that puts out the fire, but doesn’t rebuild the house. As Manfred Weber, von der Leyen’s own ally, put it: this is “damage control” at best.

In the high-stakes world of international trade, not every deal comes with a ribbon and confetti. Sometimes, diplomacy means settling for less just to keep talking. And sometimes, the biggest wins are the crises you barely avoid.