It was a weekend of mixed emotions for the European Union. There was the news from Donald Trump that he will impose a 10 per cent tariff on eight European countries in retaliation for their opposition to his plans to take control of Greenland. But on a brighter note, the EU finally signed the Mercosur trade agreement with several South American countries. The European Commission hailed it as the creation of ‘a free-trade zone of roughly 700 million people’, one which they promise will save EU companies more than €4 billion a year in customs duties.

Ursula von der Leyen, the Commission president, said: ‘We choose fair trade over tariffs, we chose a productive long-term partnership over isolation.’

The prospect of a trade war between the US and EU may convince MEPs to ratify this deal

The Federation of German Industries praised the deal as a strong signal for free trade, delighted with what it will mean for the automotive industry, mechanical engineering and the pharmaceutical sector. Currently, car exports to Mercosur countries are subject to a 35 per cent tariff.

The response in France wasn’t quite as ecstatic. Jordan Bardella, president of the National Rally, called the deal an ‘extremely dark day for French agriculture’ and pointed the finger of blame at Emmanuel Macron. The fact that it had been signed in the face of French........

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