The new U.S.-EU trade deal, signed on July 27, 2025, has sparked controversy across Europe, as many view it not as a breakthrough but as a lopsided concession to American pressure.

The Scope of the Agreement

In short, the agreement avoids a full-blown trade war. It caps U.S. tariffs on EU exports at 15%, preventing a threatened hike to 30%. Certain strategic sectors like aircraft parts, semiconductors, and some pharmaceuticals are partially shielded, and a few niche agricultural products escape duties altogether. However, the deal does not reverse Trump’s existing 50% tariffs on steel and aluminum, which remain in place pending further negotiations.

In exchange, the EU committed to purchasing $750 billion in U.S. energy over three years (including oil, gas, and nuclear fuel), investing another $600 billion into the U.S. economy, and further opening its market to tariff-free American goods. In terms of actual economic reciprocity, the EU received little to nothing in return.

What the EU Gave Up

Let’s be clear: the EU yielded significantly. It not only accepted a substantial tariff burden on key exports such as cars, wine, and chemicals but also agreed to massive financial outflows toward U.S. energy and defence industries. All of this was framed as a way to avoid the spectre of protectionist escalation. Pharmaceutical goods remain duty-free for now, subject to the outcome of a U.S. national security review. In effect, the EU delayed rather than removed the threat.

While von der Leyen........

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