Europe Made Major Trade Concessions to Trump. How Did That Happen?
Europe Made Major Trade Concessions to Trump. How Did That Happen?
nytimes.com
Author: Jeanna Smialek
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Published on: 29/07/2025 | 00:00:00
AI Summary:
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E.U. Officials agree to a blueprint for an unfavorable trade deal with President Trump. The deal will hit most European exports with 15 percent tariffs, while dropping levies on American cars and some farm goods to zero. A left-leaning European Parliamentarian from Belgium posted a dismayed, “What happened, Europe?” The situation could have become a disaster. Europeans hoped to negotiate to sharply lower that rate, and even planned to retaliate if that effort failed. But getting the bloc’s 27 member states on board for a unified and full-throated response proved difficult from the start. Diplomats and officials were critical of the deal that Britain struck with Mr. Trump. European officials hoped to negotiate Mr. Trump’s across-the-board tariffs down to the low single digits that prevailed before this year. By late last week, it had become clear they would settle for 15 percent, in line with several other American trading partners. Some European politicians had wanted the bloc to fight harder to avoid higher levies. European officials considered just how painful retaliation might be if it were to unleash an all-out trade war. The European Union did not cave on all of its priorities. Some of the wins that U.S. Officials are now celebrating, like ramped-up purchases of American energy products, would have likely happened anyway. Europe has been working hard to keep the United States engaged in NATO. At a time when Russia is more aggressively expansionist, the tariff agreement avoids a full-fledged trade war that would have been punished both sides. Mr. Trump has at times wavered on his support for Ukraine as it defends itself against Russia.
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