EU and US Strike Unequal Trade Deal to Dodge Tariff War—Europe Faces Steep Costs

The United States and European Union have reached a trade agreement that imposes a 15% baseline tariff on most EU goods entering the US, narrowly avoiding a much higher 30% tariff threatened by President Trump. In exchange, the EU has pledged to purchase hundreds of billions of dollars in American energy and military equipment, though experts doubt these targets are realistic. While the deal averts an immediate trade war and brings some stability to global markets, European leaders and analysts widely view the agreement as lopsided and humiliating for the EU, with France and Germany especially critical. The deal is expected to raise prices on imported goods like cars and pharmaceuticals for European consumers, and has sparked internal EU debate over lost economic clout and future strategy. Despite the relief at avoiding escalation, the agreement highlights the EU's weakened negotiating position and the growing dominance of US trade policy.