Donald Trump's Trade Deal Splits Europe
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The trade deal struck between the EU and the U.S. has prompted a mixed reaction from European leaders who have expressed both concern about the impact of tariffs and relief that an all-out trade war has been averted.
EU chief Ursula von der Leyen and President Donald Trump announced the deal which would see 15 percent levies on most EU exports to the U.S.—or half the rate threatened by Trump—in return for Europe buying more American energy and slashing taxes on some imports.
Spain and France have given the least enthusiastic response, while Germany's chancellor was among other leaders who expressed support, at least for an end to the uncertainty. Newsweek has contacted the White House for comment.
President Donald Trump and President of the European Commission Ursula von der Leyen announce a US-EU trade deal after a meeting at Trump Turnberry golf club on July 27, 2025 in Turnberry, Scotland.
President Donald Trump and President of the European Commission Ursula von der Leyen announce a US-EU trade deal after a meeting at Trump Turnberry golf club on July 27, 2025 in Turnberry, Scotland.Why It Matters
Trump has touted the tariff deal with the EU as the "biggest of them all" as he pursues a plan to reorder the global economy and trim the American trade deficit.
EU members had feared tariffs of 30 percent, but they have greeted the much lower 15 percent levies with caution, with some bemoaning an act of "submission."
What To Know
After talks at Trump's Turnberry golf course in South Ayrshire, Scotland, the president and von der Leyen agreed on tariffs on EU goods entering the U.S. at 15 percent, down from the 30 percent import tax rate Trump had threatened.
Von der Leyen described the agreement as a "huge deal" but European leaders greeted it with less gusto, even if the tariffs are half what had been threatened and most acknowledged that at least it had created some predictability.
French Prime Minister François Bayrou posted on X that it was a "dark day" when such an alliance as the EU "resigns itself to submission."
Spanish Prime Minister Pedro Sánchez said he would support it "without any enthusiasm." Swedish Trade Minister Benjamin Dousa described the deal as "maybe the least bad alternative."
Hungarian Prime Minister Viktor Orbán said Trump "ate von der Leyen for breakfast" while Danish Foreign Minister Lars Løkke Rasmussen said the trade conditions would be worse than before but there needed to be a balance that both sides can live with.
Germany's chancellor, Friedrich Merz, said the agreement avoided a trade conflict that would have hit the export-orientated German economy hard, particularly in the automotive sector.
Micheál Martin, prime minister of Ireland, which has a large trading partnership with the U.S, put a positive spin on the agreement for bringing "clarity and predictability to the trading relationship between the EU and the U.S." although he added it would be challenging.
The EU's trade commissioner Maroš Šefčovič said it was the "best deal we could get under very difficult circumstances" and was better than a trade war. Ville Tavio, Finland's foreign trade minister, said the agreement calmed the situation "but there's absolutely no reason for celebration."
German Chancellor Friedrich Merz and French President Emmanuel Macron on July 23, 2025 in Berlin, Germany.
German Chancellor Friedrich Merz and French President Emmanuel Macron on July 23, 2025 in Berlin, Germany.In comments emailed to Newsweek, L. Daniel Mullaney, nonresident senior fellow at the Atlantic Council's Europe Center said the deal "will be controversial among important constituencies in the EU, which reasonably view the tariffs as contrary to international rules—and do not want to reward what they see as bad behavior."
Von der Leyen could face pressure to the U.S. tariffs, which "could throw the deal off the rails between now and August 1" although the preliminary deal will allow both sides to work out further details on sectoral tariffs and non-tariff barriers, he added.
Jörn Fleck, senior director, at the same think tank, said how the deal treats U.S. auto production and EU automotive exports will be worth watching closely.
Meanwhile, pharmaceuticals, steel, and maybe semiconductors appear to have been excluded from this deal and so discussions on those sectors will continue, Fleck added.
Trump said the bloc would increase investment in the U.S. economy by $600 billion (though the EU has said that this would come from the private sector, over which Brussels has no authority) and spend $750 billion on energy.
Von der Leyen said that investment over the next three years in American liquefied natural gas (LNG), oil and nuclear fuels would reduce European reliance on Russian energy whose exports fund Moscow's war on Ukraine.
However, Septimus Knox, director, disputes and investigations, at geopolitical and cyber risk consultancy S-RM told Newsweek that the deal is more about securing future supplies rather than decoupling the EU from Russian energy.
What People Are Saying
Germany's chancellor Friedrich Merz posted on X: "Stable and predictable trade relations with market access benefit everyone on both sides of the Atlantic, businesses and consumers alike."
French Prime Minister François Bayrou: "It is a dark day when an alliance of free peoples, brought together to affirm their common values and to defend their common interests, resigns itself to submission."
Spain's prime minister Pedro Sánchez: "I value the constructive and negotiating attitude of the president of the European Commission. In any case, I support this trade agreement, but I do so without any enthusiasm."
Hungary's prime minister Viktor Orbán: "This is not an agreement...Donald Trump ate [Ursula] von der Leyen for breakfast...as the U.S. president is a heavyweight when it comes to negotiations while Madame President is featherweight."
Irish Prime Minister Micheál Martin said the deal "creates a new era of stability that can hopefully contribute to a growing and deepening relationship between the EU and the U.S."
What Happens Next
Von der Leyen has described the deal as a "framework" and more details will be negotiated in the coming weeks.
The commission can negotiate trade deals for the entire bloc but it still needs the backing of the 27 EU member states, whose ambassadors will meet next Monday.
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