The European Union stands at a crossroads where the risks of economic capitulation weigh heavily against the costs of prolonged confrontation. With the United States pressing for a swift bilateral trade agreement under the pressure of an imminent July 9 deadline, the EU appears increasingly inclined to accept less-than-ideal terms to stave off further escalation. While this pragmatic stance may prevent a full-blown trade war, it carries long-term strategic costs that European leaders must weigh carefully.

At the heart of the matter lies the Trump administration’s insistence on maintaining a 10 per cent across-the-board tariff on most EU goods ~ a baseline that is both politically expedient for Washington and structurally lopsided for Brussels. For a bloc that prides itself on multilateralism and rulesbased order, agreeing to such unilateral terms is more than just a tactical concession; it risks setting a precedent that economic power alone can dictate the rules of trade.........

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