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Trade agreements

EU Leaders Criticize US Trade Deal, Labelling Brussels 'Submissive'

Strategic Insights

— 1 min read

EU leaders are reeling from a US trade deal that leaves the bloc with worse terms than Brexit Britain, with Hungarian Prime Minister Viktor Orban accusing European Commission chief Ursula von der Leyen of being "a featherweight" in negotiations with US President Donald Trump. The deal, agreed upon after a meeting between Trump and von der Leyen in Scotland, subjects the EU to 15% tariffs on most of its goods entering America, lower than the 30% levy previously threatened but worse than the UK's 10% tariff rate.

Key Takeaways:

  • The US-EU trade deal will subject the EU to 15% tariffs on most of its goods entering America, lower than a 30% levy previously threatened but worse than the UK's 10% tariff rate.
  • EU leaders, including Hungarian Prime Minister Viktor Orban and French Prime Minister Francois Bayrou, criticized the deal, labelling Brussels "submissive" and a "dark day" for the bloc.
  • Labour Business Secretary Jonathan Reynolds acknowledged that Brexit is to thank for Britain securing a better trade deal with the US than Europe.
  • Former Tory MP Sir John Redwood questioned why Labour is still trying to forge closer ties with the EU despite the "bad" deal it had negotiated.
  • EU Commission chief Ursula von der Leyen defended the deal, calling it "huge" and "important for our businesses on both sides of the Atlantic".
  • The deal was negotiated after a meeting between Trump and von der Leyen in Scotland.
  • Hungarian Prime Minister Viktor Orban accused von der Leyen of being "a featherweight" in negotiations with Trump.
  • Labour Business Secretary Jonathan Reynolds admitted that the UK's favourable deal was a direct benefit of Brexit.

Statistics:

  • 15%: The tariff rate the EU will be subjected to under the US-EU trade deal.
  • 30%: The tariff rate the EU had previously feared under the deal.
  • 10%: The tariff rate the UK enjoys under its trade deal with the US.
  • 15% tariffs will be applied to most EU goods entering the US, lower than a 30% levy previously threatened.

Sources:

  • "EU leaders lambast 'submissive' Brussels as US deal announced." The Telegraph.
  • "Labour admits Brexit is to thank for Britain's better trade deal with US than Europe." The Telegraph.
  • "Exclusive interview with Jonathan Reynolds, Labour Business Secretary on trade deal." Sky News.

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