Once again, the President of the European Commission, Ursula von der Leyen, has confirmed… inadequacy. She has concluded an agreement with the US, which is crushing the European economy and especially the German car manufacturers, while leaving room for the -proven- unpredictable- American President, Donald Trump, to change the terms of the agreement as he sees fit.
France is already under fire with the country’s Prime Minister speaking of a “black day” in a statement that suggests that there could be a serious split between the member states. The reactions of the German car manufacturers are intense due to the enormous cost that the 15% tariff will bring.
Communicating Political Vessels
- Meloni clearly supported Trump during the election, Trump calls her his “friend”.
- Meloni supported Ursula Von Der Leyen in the impeachment motion so that she would not lose power, causing outrage.
- Trump met with Ursula Von Der Leyen and she promised 20 trillion in trade with the US!!!
The EU’s impact
The deal, which will impose 15% tariffs on almost all European exports to the US, including cars, puts an end – albeit temporarily – to the threat of punitive 30% import tariffs from 1 August (as per Trump’s original ultimatum for a deal) but is a stark departure from the zero import and export tariffs initially offered by the EU.
It also means that European exporters to the US will face more than three times the average tariff of 4.8% now in place, with negotiations continuing on steel, which still faces a 50% tariff, aviation, and a question mark over future barriers to pharmaceutical exports.
France’s Diversification
French Prime Minister François Bayrou said Europe had been subjugated to the US, in a “black day” for the Union. “It is a black day when an alliance of free peoples, who came together to affirm their values and defend their interests, decides to submit,” Bayrou said in a social media post.
Orban: Trump ate Ursula for breakfast
This is not a deal. Donald Trump ate von der Leyen for breakfast, that’s what happened and we suspected it would happen because the US president is a heavy name when it comes to negotiations, while Madam President is a light name,” said Hungarian Prime Minister Viktor Orban.
Germany Divided
In Germany, although Chancellor Friedrich Merz was quick to welcome the deal, saying it prevented “an unnecessary escalation in transatlantic trade relations” and a potentially disastrous trade war, German carmakers are on alert.
The president of the German Automotive Industry Association (VDA), Hildegard Müller, said: “One thing is also clear: the 15% US tariff, including on automotive products, will cost the German automotive industry billions a year and will burden it in the midst of the conversion. In view of the long-term commitments for additional investment in the US, the details of which have not yet been determined, the EU is now called upon with even greater urgency to make conditions in Europe internationally competitive for investors and companies, in order to become more attractive and important as an investment destination again.”
European leaders’ reactions
Other European leaders also said:
Giogia Meloni, Italian Prime Minister: “I see it as positive that there is an agreement, but without seeing the details I cannot judge it in the best way.”
Petteri Orpo, Finnish Prime Minister: “The agreement brings much-needed predictability to the global economy and to Finnish companies. Work must continue to remove trade barriers. Only free transatlantic trade benefits both sides to the maximum.”
Benjamin Dousa, Swedish Trade Minister: “This agreement does not make anyone richer, but it may be the least bad alternative. What looks positive for Sweden, based on an initial assessment, is that the agreement creates some predictability.”
Simon Harris, Irish Trade Minister: “A deal provides a much-needed measure of certainty for Irish, European and US businesses which together represent the most comprehensive trading relationship in the world. While Ireland regrets that the 15% basic tariff is included in the deal, it is important that we now have greater certainty about the foundations of the EU-US trading relationship, which is essential for jobs, growth and investment.”
Trump could still change the terms of the deal
The EU-US trade deal was “merely a high-level, political agreement” that could not replace a carefully crafted trade deal: “This, in turn, creates the risk of different interpretations down the road, as was seen immediately after the conclusion of the US-Japan deal.”
On Sunday (27/7/2025), a senior US administration official told reporters in Washington that Trump retains the option to increase tariffs in the future if European countries do not meet investment commitments contained in the agreement.
