by Olivier Acuña Barba •Printed: July 28, 2025•22:51•4 minutes learn
Donald Trump leaves as a transparent winner, a minimum of for now | Credit score: White Home Gallery
European Fee (EC) President Ursula von der Leyen welcomed the US-EU commerce settlement and “giant scale” on Sunday night time, thanking President Donald Trump for “personally for his private dedication and management in reaching this breakthrough.” She seemed to be pleased with what seemed to be a one-sided deal when Trump defined, saying, “The EU would have 15% tariffs on all EU items, and the bloc would open the market to US exporters with zero p.c tariffs.”
“The US has many benefits to this deal, nevertheless it’s not very clear what the EU will get,” stated BBC. It is attracting consideration.
The next day, on Monday, France denounced the commerce deal as “submitting”, whereas different EU states expressed their assist for the deal they discovered defeated. They’re specializing in it avoiding an economically damaging commerce struggle with Washington.
“I’ll resign to obedience.”
“It is a darkish day when an alliance of free individuals gathered to affirm their widespread values and defend their widespread pursuits will resign to submission,” stated French Prime Minister François Beilou. I wrote it x.
German Prime Minister Friedrich Merz stated the settlement would “considerably harm” his nation’s funds, in line with the BBC. article.
The commerce settlement requires approval from all 27 EU members. Every has totally different advantages and differs of their dependency stage of exported items to the US.
Merz warned that the US and European economies can be adversely affected, however the Brussels negotiating group stated it “can not anticipate any additional achievement” to the US president, who determined to readjust relations with its main buying and selling companions.
Hungarian Prime Minister Victor Orban was additionally not too vibrant. City, a detailed ally of Trump, stated the US president “eats von der Leyen for breakfast.”
In distinction to their negativity, European shares opened on Monday, with the Stoxx 600 touching 4 months’ heights, and all the opposite main blues additionally touching the inexperienced. Excessive-tech and healthcare shares led the best way.
“People who find themselves hoping for a hurricane are grateful for the storm,” stated Wolfgang Große Entrup, head of the German Chemical Business Affiliation VCI.
Commerce Contract Winners and Losers
Clearly, Trump is the largest winner of them. He returns residence in a deal that pours lots of of billions of {dollars} into US sources of import taxes. Nevertheless, so long as financial knowledge scheduled later this week reveals that the novel reshaping of the US economic system is a backfire, his victory could not final, so it could be too early to boost the trophy.
Figures on inflation, employment, development and shopper confidence make it clearer whether or not Trump’s tariffs are bringing ache or advantages.
Sadly for Trump, American shoppers are losers. As a result of, as they’re already coping with inflation, this transaction might improve financial grief by rising costs on EU items.
Merely put, a 15% tariff signifies that if a US shopper was paying $100 for an EU merchandise, they’d pay $115.
The inventory market is the winner
Australian dealer Pepperstone’s Chris Weston instructed AFP that the deal “is clearly market-friendly and will present a larger probability of an extra upward pattern in direction of the euro.” He is not fallacious. Inventory markets in Asia and Europe rose on Monday following the announcement of buying and selling frameworks.
German automobile maker loses
The tariffs imposed on importers who deliver EU vehicles into the US have virtually halved the 27.5% charge imposed by Trump in April, to the brand new 15% charge. Vehicles are one of many high exports of the EU to the US. As the biggest automobile producer within the EU, Germany would have been intently monitored.
VDA’s German Carmaking Commerce Group warned {that a} 15% tax would “value billions of {dollars} a yr.”
German drugs, loser
Trump stated the deal would not cowl medicines, however underneath that, many merchandise have been reduce to fifteen%. Nevertheless, Von Der Leyen stated they’re included, and the White Home supply Confirmed That is to the BBC.
Anyway, each outcomes have an effect on European prescribed drugs.
US Vitality, Winner
Along with rising US general funding by $600 billion, the EU will even buy $750 billion (£558 billion, €638 billion) in US vitality, Trump stated. “We’ll change Russian gasoline and oil with main purchases of US LNG (liquefied pure gasoline), oil and nuclear gasoline,” von der Leyen stated.
We, EU Airways, Winners
Von Der Leyen stated sure “strategic merchandise” shall be exempt from customs duties that embrace plane and plane elements, sure chemical substances and sure agricultural merchandise.
Wine, spirits, agri-food
In accordance with EU officers, negotiations are persevering with and discourse is extra superior on the spirit. That is welcome information for Irish distilleries and will result in further lobbying from main European winemakers in France, Italy, Germany, Spain and Portugal.
Agriculture stays shielded from US imports that don’t adjust to EU rules. Nevertheless, the EU has eradicated tariffs on a few of the produce itself, resembling sure nuts, processed fish, pet meals, and Guardians. I defined it.
Eire’s drawback
This settlement creates a division in Eire. Northern Eire merchants can promote to the US at a ten% tax charge, courtesy of the UK commerce, so Irish neighbors shall be hit with a 15% tax charge. The disparity triggers tough diplomatic conversations to make sure that the island-wide stability is maintained, as outlined within the Good Friday Settlement, which is already affected by radioactive fallout from Brexit.
