EU Accepts 15% US Tariffs, Secures $1.35T Energy Investment

The European Union has agreed to a trade deal with the United States under President Donald Trump, resulting in a 15% tariff on EU goods entering the U.S., notably including cars but excluding steel, which will be subject to quotas. This agreement averted a threatened 30% tariff that Trump had imposed, but many European leaders, especially in France, criticized the deal as a capitulation and a sign of submission to U.S. demands, with French Prime Minister Francois Bayrou calling it a "dark day" and Hungary's Viktor Orban saying Trump "ate Ursula von der Leyen for breakfast." While European Commission President Ursula von der Leyen hailed the deal as a success, major EU economies like France and Germany expressed strong reservations, viewing the terms as unbalanced and economically inadequate. The deal also includes large commitments from the EU to purchase U.S. military equipment and energy, which some analysts suggest might have happened regardless due to geopolitical factors like the war against Russia. Critics argue that the agreement undermines the World Trade Organization rules and reflects a broader European willingness to accept unfavorable terms to avoid deeper economic disruption and trade wars with the U.S.