A landmark trade agreement between the United States and the European Union, finalized on Sunday, July 28, has triggered a wave of mixed reactions across Europe. While leaders from Germany and Italy hailed the deal as a breakthrough that helped avert a trade war, France has sharply criticized the agreement, calling it a humiliating concession to American pressure.
The deal, which imposes a 15% tariff on 70% of European exports to the US, has sparked heated debate in Brussels and beyond. French leaders have openly condemned the terms, suggesting the EU has bowed to economic bullying by US President Donald Trump, who had earlier threatened a crippling 30% tariff on all European goods starting August 1.
France Speaks Out: “A Dark Day for Europe”
French Prime Minister François Bayrou was the first to go on record, posting on X (formerly Twitter), “It is sad when a coalition of independent countries, formed to protect their common values and interests, buckles under pressure.” Calling the day of the deal a “dark day for the EU,” Bayrou’s comments struck a chord with many pro-EU voices who saw the agreement as a defeat.
Joining him, French Minister of European Affairs Benjamin Haddad said the bloc must seriously consider retaliatory steps: “This situation is not good, and the EU should take countermeasures.” French Trade Minister Laurent Saint-Martin was even more blunt, stating, “Trump only understands the language of power. If we had taken countermeasures earlier, the deal might have been better.”
Notably, French President Emmanuel Macron has remained silent, neither supporting nor opposing the agreement publicly—raising speculation about internal divisions within France’s political leadership on how to handle the transatlantic economic relationship.
Italy and Germany Welcome the Deal
In stark contrast to France, Germany and Italy have embraced the agreement, with German Chancellor Friedrich Mertz and Italian Prime Minister Giorgia Meloni issuing statements of support. Both leaders highlighted the deal’s role in preventing a full-blown trade war.
European Trade Commissioner Maroš Šefčovič echoed their sentiment, describing the deal as a “big step” toward restoring economic stability between two of the world’s largest trading partners.
“This agreement is not perfect, but it gives us breathing space,” Šefčovič noted, adding that avoiding the 30% tariff threatened by Trump was a significant diplomatic win.
What the Trade Deal Includes
Under the terms of the agreement:
- 70% of European exports to the US will now face a 15% tariff—a sharp increase from the current average of 4.8%.
- Key affected sectors include automobiles, pharmaceuticals, and electronics.
- Some agricultural products, chemicals, aircraft parts, cork, and semiconductor equipment are exempted.
- Medicines and medical equipment are spared for now, with a cap of 15% tariff if introduced in the future.
- In return, the EU has committed to buying $750 billion worth of American energy over the next three years.
- The EU will also invest $600 billion in the United States, targeting infrastructure, digital transformation, and clean energy.
The total financial value of the agreement is estimated to exceed $1.35 trillion—making it one of the most significant bilateral trade arrangements in recent years.
Why the Deal Is Controversial
Critics, particularly in France, argue that the deal was struck under pressure and reflects the EU’s weakened negotiating power. The 15% tariff, they claim, will hit European industries hard—especially car manufacturers in France and Germany, and pharmaceutical firms across the continent.
Supporters counter that the deal saved Europe from Trump’s impending 30% tariff and bought valuable time for EU exporters to adjust to a new trade landscape. They also point to the massive investment and energy cooperation as potential long-term wins.
What Happens Next?
The agreement will be debated in the European Parliament and member states over the coming weeks. While it’s unlikely to be overturned, political divisions are deepening. Analysts expect France to push for safeguards and possibly initiate internal talks to reassess the EU’s trade strategy with the United States.
Meanwhile, business groups in Europe are calling for clarity on implementation timelines, sector-specific rules, and support for small exporters who will be hit hardest.
The US-EU trade deal has achieved its immediate goal—avoiding an economic clash—but at what cost? With France leading the charge against the agreement, and Germany and Italy defending it, the divide in Europe’s economic vision is clear. As the dust settles, one thing is certain: Europe’s transatlantic relations are entering a new and uncertain phase.
