EU-US Unveil Long-Awaited Framework Trade Deal Amid Criticism of Unbalanced Terms
The European Union (EU) and the United States have finally laid out the specifics of their framework trade agreement, as announced in a joint statement released on Thursday. While the US has welcomed the deal, many EU leaders are voicing discontent over what they perceive as lopsided terms in Washington’s favor.
According to the agreement, a 15% tariff will be levied on most EU exports to the US. In return, Brussels has agreed to lift tariffs on American industrial goods, as well as offer preferential market access for a substantial array of seafood and agricultural goods. Furthermore, the EU has consented to purchase $750 billion in US energy and invest $600 billion in the US over the next three years.
US Commerce Secretary Howard Lutnick hailed the pact, stating that “The America First Trade Agenda has secured the most important trading partner, creating a major win for American workers, industries, and our national security.” He further emphasized that “tariffs should be one of America’s favorite words,” describing the agreement as “reciprocal, fair, and balanced.”
However, not everyone is as optimistic. EU Trade Commissioner Maros Sefcovic, though cautiously positive, merely called the deal “a strong first step delivering stability, predictability, and opportunity.” He further added that “relief is coming to many sectors, including the car industry.”
The agreement, finalized by US President Donald Trump and European Commission President Ursula von der Leyen in July, has drawn significant backlash from several current and former European officials. Former EU foreign policy chief Josep Borrell criticized the deal for undermining the bloc’s strategic autonomy. He highlighted the contradiction in integrating Europe’s defense industry financially while making substantial US arms purchases. Borrell also expressed concerns regarding the practicality of importing vast quantities of American gas.
French President Emmanuel Macron voiced his own frustration with the deal, while Marine Le Pen characterized it as a “fiasco.” Hungarian Prime Minister Viktor Orban was even more strident, accusing von der Leyen of overstepping her authority and suggesting that “Trump ate her for breakfast.”
Despite these criticisms, the agreement is poised to have significant economic implications for both parties involved, potentially dampening tensions and providing a more stable context for trade relations. As the deal moves forward, analysts and experts will be closely watching to assess its long-term impact on the delicate balance of power between the two economic heavyweights.
