The European Union has come under fire for its new trade deal with the United States, with former EU foreign minister Josep Borrell branding the deal, which imposes a 15% tariff on European goods, a "capitulation" and a "sign of weakness". He said the European Commission had caved in to pressure from former US President Donald Trump instead of negotiating. "Politically, it gives the impression of subordination," Borrell told the server EUObserver.
The agreement, announced by Brussels and Washington at the end of July, comes as a compromise after months of threats. Trump's team had threatened to impose 30% tariffs on European cars, steel and other key sectors. In the end, "mitigation" came - a tariff of 15 %. According to Reuters the EU has adopted in an attempt to avert a full-blown trade war. The European Commission presented it as the "least bad solution".
But Borrell argues that the Union has succumbed to the tactics of the stronger. "This is not a deal, this is blackmail. The US said, 'Either 30 % or 15 %' - and we are supposed to be grateful?" he wondered.
France is furious, Germany is silent
While European Commission President Ursula von der Leyen described the outcome as a "strategic compromise", not everyone in Europe shares her enthusiasm. French Prime Minister François Bayrou described the deal as a "dark day for Europe". According to The Guardian He criticised in particular the fact that the EU promised massive purchases of US gas, arms and semiconductors, while it itself did not get any comparable concessions.
Under the terms of the agreement, the EU is to buy $750 billion worth of US energy equipment over the next three years and also invest up to $600 billion in US defence and technology projects. "Trump only understands strength. We showed a smile and he screwed us over," said the French trade minister Laurent Saint-Martin.
Germany remained more restrained. According to Deutsche Welle Berlin appreciated that a "destructive trade war" had been avoided, but warned that the German car industry could suffer losses of billions of euros a year because of the new tariffs.
Trade peace at a high price
Economists warn that the deal is disadvantageous for the EU. Capital Economics estimates that tariff increases could reduce European GDP growth by 0.2 % per year. Investor confidence in the eurozone plunged in August, as reported by The Guardian, especially because of the impact on export-oriented sectors such as pharmaceuticals, automotive and engineering.
"The EU presents itself as a global player but acts as a weaker partner," summed up the situation political scientist Ulrich Speck For Politico Europe. Borrell added: "This is not strategic autonomy, it's an illusion."
Symbolic failure?
Some observers speak of a "Suez moment" - a historical point at which Europe lost its illusions about its global power. As he wrote The Guardian in his comment, "Europe has just shown that it is subordinate, not equal."
Trump, meanwhile, made no secret of his satisfaction. He described the agreement on a joint meeting with von der Leyen in Scotland as "America's biggest trade victory in a decade"as reported by the agency Reuters.
TASS/gnews.cz - GH
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