EU Capitulates To Trump In Vassal-State Trade Deal

2025-07-28 06:10:50

(MENAFN- Asia Times) European Commission President Ursula von der Leyen agreed to a framework deal with the US whereby the EU will be charged 15% tariffs on most imports, commit to purchasing US$750 billion in US energy exports and invest $600 billion in the US economy, some of which will be military purchases.

US tariffs on EU steel and aluminum exports will remain at 50% while the EU agreed not to tariff the US at all. The alternative to this lopsided arrangement was for Trump to impose his threatened 30% tariffs by August 1 .

The EU's macroeconomic strength was greatly weakened over the past 3.5 years as a result of the anti-Russian sanctions that it imposed in solidarity with the US on what had hitherto been its cheapest and most reliable energy supplier.

It was therefore already at a critical disadvantage in any prospective trade war. The EU's failure to reach a major trade deal with China since Trump's return to office, evident during their most recent summit late last week, made Sunday's outcome a fait accompli in hindsight.

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