The coordinates of a bad economic deal against Europe

Europeans have been thrown into deep shock following the signing of a tariff agreement with the White House. Apparently, European officials, in order to prevent Washington from raising customs tariffs, were forced to accept an unfavorable deal with the Trump administration. This agreement has not only failed to bring tariffs on European goods to zero, but has also expanded the range of goods subject to U.S. customs duties. The only apparent positive point is a modest reduction of some tariffs from 20–30 percent down to 15 percent.

The crucial point, however, is that by accepting this deal, Europe effectively formalizes these tariffs for the long term — meaning that even after the end of Trump’s presidency, the continent will continue to grapple with the consequences of the tariff crisis.

Ursula von der Leyen, President of the European Commission, insists that the best possible deal on tariffs has been reached. However, leaders of Europe’s two largest economies, Germany and France, have expressed dissatisfaction with this trade agreement between Brussels and U.S. President Donald Trump.

German Chancellor Friedrich Merz has warned that the agreement will “fundamentally” harm his country’s finances. French Prime Minister François Bayrou has described the deal as a form of “self-sacrifice.” These remarks come after both German and French officials had previously chosen to remain silent on the matter. Now, the catastrophic dimensions of this agreement are beginning to surface.

Meanwhile, von der Leyen — whom some analysts see as Washington’s key player within the EU — has granted concessions to the White House that will yield nothing but a “negative trade balance” for Europeans. EU leaders believed that by fully aligning themselves with the Trump administration’s economic and military policies under NATO (which includes 28 European countries), they would see significant U.S. flexibility in tariff negotiations. What has actually happened is the worst-case scenario.

The meeting and agreement between the European Commission President and the U.S. President took place at Trump’s golf club in Scotland. After the meeting, von der Leyen irrationally described the agreement as “tremendous,” while Trump, as usual, claimed it would bring the U.S. and EU closer together. It is no surprise that the U.S. president welcomed an agreement whose benefits flow entirely to Washington and whose costs fall heavily on Europe. European officials now find themselves facing a system that increases their medium- and long-term economic commitments across the Atlantic.

The deal was not warmly received in other EU member states either. However, some tried to justify this one-sided agreement, arguing that despite its flaws, it was still preferable to a full-blown economic war. Under the deal, a significant portion of EU exports to the U.S. will be subject to a 15 percent tariff — a slight improvement over Trump’s earlier demand for a 30 percent tariff on EU goods.

In exchange for this tariff reduction, the EU has committed to importing energy from the U.S. and removing certain taxes on U.S. imports. In other words, under these conditions, the concept of zero tariffs has become meaningless. It seems Europeans, out of fear of death, have not even settled for catching a fever — they have effectively committed economic suicide in order to avoid direct involvement in this tariff dispute, rather than activating their own shared economic and trade capacities.