Donald Trump strong-armed Europe into signing a trade deal, but the victory is hollow. In chasing short-term financial wins, Washington has shattered trust with its closest allies, turning cooperation into quiet resentment.

Double Asymmetry

As details of the deal show, Washington got everything it wanted from the EU. The EU’s exports to the US will be charged at 15%. Steel exports, however, will still be charged at 50%. The US exports to the EU will, however, be duty free. In addition, the White House released details of the deal show that “the EU will purchase $750 billion in US energy and make new investments of $600 billion in the United States, all by 2028”. The EU has also decided to delay its planned tariffs on the US for another six months for negotiations to flourish and yield a more balanced outcome—something that seems to have very low probability of success. The White House document calls this deal a massive step towards “liberating America from unfair trade practices … [which forced] American workers and businesses [to] tolerate unfair trade practices that have disadvantaged them for decades and contributed to our historic trade deficit”.

If, before the deal, the EU was dependent on the US for its security, this deal has subordinated the union to the US in economic and financial terms as well. In other words, this deal........

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