France and Germany React to Trade Deal with US: Concerns Rise

Germany and France lead a wave of apprehension within the EU regarding the newly negotiated trade deal with the United States, highlighting fears of economic repercussions and political submission.

Leaders from Germany and France have voiced strong criticism of the newly forged trade agreement between the EU and the United States, which was struck by EU chief Ursula von der Leyen and US President Donald Trump. German Chancellor Friedrich Merz stated that the deal would "substantially damage" the finances of Germany, while French Prime Minister Francois Bayrou characterized it as a sign of "submission."

Despite the disheartening response across the European Union, some member states acknowledged that agreeing to an imperfect deal was preferable to the potential friction of a full-blown trade war. The terms of the agreement include a 15% tariff on a majority of EU exports to the US—halved from the rates initially threatened by Trump—in exchange for Europe committing to larger purchases of American energy and reducing taxes on certain imports.

After private discussions at Trump’s resort in Turnberry, Scotland, von der Leyen referred to the agreement as a "huge deal," while Trump indicated it would solidify US-EU relations. However, the deal requires ratification from all 27 EU member states, each having unique trade dependencies with the US.

Although no countries appeared poised to obstruct the deal, enthusiasm was absent among European leaders. Merz cautioned that both European and US economies would suffer negative consequences, remarking that the negotiating team from Brussels could not have expected anything more from a US president intent on recalibrating trade relationships.

Bayrou's remarks on social media were particularly critical, declaring it to be a "dark day" for a union of nations founded on common values. Meanwhile, Hungarian Prime Minister Viktor Orban, a Trump supporter, claimed that Trump had easily outmaneuvered von der Leyen.

Spanish Prime Minister Pedro Sanchez indicated his reluctant support for the agreement. In light of the looming prospect of 30% tariffs, the EU ultimately conceded to avert greater economic backlash, though concerns about the deal's potential impacts lingered.

While the framework of the agreement is established, specific details are expected to be finalized through further technical discussions. Despite some skepticism, there was a sense of relief among parts of the European leadership. Finland’s prime minister noted that the deal would offer "much-needed predictability," and Irish Trade Minister Simon Harris highlighted its importance for job security and investment.

At a press conference, the EU’s trade commissioner, Maros Sefcovic, defended the terms of the deal as the "best we could get under very difficult circumstances," emphasizing the necessity of maintaining strong trade relations amid geopolitical tensions, particularly in light of ongoing events in Ukraine.