France, Germany Lead Cautious EU Reaction to New US Trade Deal

Europe’s two largest economies have led a chorus of gloomy reactions to the trade deal struck between EU chief Ursula von der Leyen and US President Donald Trump.

German Chancellor Friedrich Merz said the agreement would “substantially damage” his nation’s finances, while French Prime Minister Francois Bayrou said it was tantamount to “submission”.

The reaction has been downbeat across the bloc – though several capitals acknowledged signing an uneven deal was worth it in order to avert an all-out trade war.

It will see a 15% tariff on most EU exports to the US – half the rate threatened by Trump – in return for Europe buying more American energy and slashing taxes on some imports.Following private talks at Trump’s Turnberry golf course in Scotland, von der Leyen described the agreement as a “huge deal”, while Trump said it would bring the US and EU “closer together”.

The deal will require the approval of all 27 members of the EU, each of which has differing interests and levels of reliance on the export of goods to the US.

While no member state indicated it intended to block it from coming into force, there was little celebration among European leaders.

Merz warned that the economies of the US and European would both be negatively impacted, but also said the Brussels negotiating team “couldn’t expect to achieve any more” against a US president determined to rebalance relationships with major trading partners.

Bayrou was more damning, writing on X: “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.”