A new trade deal between the United States and the European Union was concluded in late July under threats of escalating tariffs from President Trump. This episode exposed a fundamental weakness in Europe’s ability to defend both its economic and political interests, as well as the rules-based international economic order. For years, the EU has spoken with growing urgency about strengthening its economic security against the weaponisation of international economic linkages, and has positioned itself as a bastion of rules-based international trade. Yet in its confrontation with Trump, this rhetoric failed to translate into action.
Europe accepted a 15% tariff baseline on most exports to the US, which, while lower than the threatened 30%, is still far higher than Trump’s 10% “liberation day” tariffs, and ten times higher than the 1.47% average before the trade war. Strategic sectors such as steel, aluminium, and copper remain subject to the 50% tariffs imposed by Trump in June. In return, the EU has agreed to grant tariff-free access to US goods entering its market. It has also pledged to purchase hundreds of billions of dollars’ worth of US energy and military equipment and to invest heavily in the American economy. Läs artikel