France and Germany React to Downbeat EU-US Trade Deal

Leaders from France and Germany voice skepticism about the recent EU-US trade deal, highlighting fears of economic repercussions while acknowledging the necessity of compromise to avoid a harsher trade conflict.

Leaders from Europe's largest economies have expressed a wave of pessimism regarding the newly established trade deal between the EU and the US, negotiated by European Commission chief Ursula von der Leyen and US President Donald Trump. German Chancellor Friedrich Merz criticized the agreement, claiming it would inflict "substantial damage" on Germany's economy, while French Prime Minister Francois Bayrou expressed that it symbolized a "submission" to US demands.

Despite the downbeat responses, several EU leaders recognized that reaching an uneven deal may be advantageous to prevent a full-blown trade war. The agreement entails a 15% tariff on most EU exports to the US, reduced from a potential 30% rate previously threatened by Trump. In exchange, the EU has committed to amplifying purchases of American energy and reducing taxes on select imports.

After private discussions at Trump's Turnberry golf resort in Scotland, von der Leyen branded the agreement a "huge deal," with Trump asserting that it would strengthen ties between the US and EU. However, as the deal now awaits ratification from all 27 EU member states, some leaders are cautious. No country has indicated it will obstruct the deal, but enthusiasm remains noticeably absent.

Chancellor Merz cautioned that both US and European economies would face repercussions from the agreement, remarking that the Brussels negotiating team couldn't anticipate achieving more under a president resolute on altering trading dynamics. Bayrou took a firmer stance, declaring on social media that it was disheartening to witness a coalition of nations forsaking their democratic values for submission.

Hungarian Prime Minister Viktor Orban, an ally of Trump, claimed that the US president effectively outmaneuvered von der Leyen in negotiations. Meanwhile, Spanish Prime Minister Pedro Sanchez voiced support for the deal but without enthusiasm.

In light of escalating tariffs, the EU ultimately settled on this deal to mitigate economic impact, albeit with reservations. With the main elements established, finer details will be sorted following further technical discussions. Even amid skepticism, some European leaders expressed relief, suggesting that the agreement offers much-needed stability for jobs and investments.

EU Trade Commissioner Maros Sefcovic defended the terms of the deal, describing it as the best outcome possible under challenging conditions. He highlighted the importance of maintaining a cooperative trade relationship with the US amidst ongoing geopolitical issues, such as the Ukraine war.