&w=3840&q=100)
Did EU get a raw deal in Trump trade pact? 7 facts
The sweeping trade agreement unveiled Sunday between the United States and European Union, forged under intense pressure from President Donald Trump, has sent shockwaves through European capitals, with many questionings whether the deal leaves the EU at a stark disadvantage. Here are seven crucial facts illustrating the challenges and concessions embedded in the pact:
US imposes across-the-board 15% tariff on EU exports
The agreement sets a 15% baseline tariff on nearly all EU goods entering the US, a sharp escalation from the previous average US tariff of about 1.6% on a trade-weighted basis for EU products. Core EU exports, including cars, machinery and manufactured goods are now hit by the full 15% rate. While this prevented Trump's threatened 30% or even 50% duties, it remains a dramatic rise and the highest generalised tariff level imposed on the EU in decades.
Major EU concessions on US energy
A central element of the deal is the EU's agreement to purchase approximately $750 billion in US energy over the coming years, with a particular focus on liquefied natural gas (LNG) to replace Russian supplies. This marks one of the largest single-sector purchase commitments ever included in a transatlantic trade deal and reflects significant US leverage on Europe's energy security.
$600 billion in new EU investments in the US
Brussels has agreed to direct around $600 billion in additional investments to the United States in forthcoming years, covering green energy, manufacturing, and military equipment. For context, this matches the scale of the recently announced EU investment pledges for China, underlining the magnitude of this concession.
Deal struck during Trump's private tour
The agreement was finalised on Trump's private golf estate in Scotland outside EU soil while the UK, no longer a member of the EU, secured a different trade arrangement with the US seen as more favourable. The optics highlight a European desperation to avert more punitive tariffs especially as London was exempted from the harshest terms on steel and aluminium.
EU pulls back on retaliation, misses broader show of strength
In opting for a settlement, Brussels scrapped or dialled back threatened counter-tariffs, unlike China and Canada both of which have previously matched Trump's measures step for step. Some analysts and European commentators argue the EU missed a chance to assert broader strength instead settling under pressure to avoid economic escalation.
Trump's core agenda intact: Steel and aluminium tariffs remain unchanged
Despite EU negotiating efforts, the deal leaves in place Trump's 50% tariffs on European steel and aluminium, with only vague promises of a future quota-based relaxation. These metals remain an especially sore point among EU industry lobbyists and the longevity of these trade barriers highlights the limited EU leverage in core strategic sectors.
Narrow exemptions: Some sectors spared but automobiles face full impact
Certain sectors notably aircraft parts, select chemicals and some agri-products won zero-tariff exemption status. However, automobiles, representing a major chunk of EU exports to the US, fall under the full 15% tariff, a significant new cost for German, French and Italian carmakers already grappling with global market headwinds.
While European leaders hailed the agreement as 'providing certainty' and averting a full-scale trade war, many in Europe see it as a lopsided settlement extracted at a moment of vulnerability. The tariff levels, energy purchase commitments, and investment pledges all signify a substantial shift in the transatlantic economic balance, one that, at least for now, appears to favour the US and President Trump's tough bargaining tactics.
STORY CONTINUES BELOW THIS AD
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
25 minutes ago
- Economic Times
Tim Cook shocks Trump with 24K gold and glass statue during White House event, internet says it's corruption in broad daylight
During a White House event highlighting Apple's U.S. manufacturing plans, CEO Tim Cook gifted US President Donald Trump a custom glass-and-gold statue. Made by Corning and designed by a former Marine at Apple, the engraved disc features Trump's name, a gold base from Utah, and Cook's signature—symbolizing Apple's American-made innovation. Tired of too many ads? Remove Ads What was the gift made out of? A tribute a day keeps the mad king away! Tim Cook of Apple bends the knee to Trump. Another elite showing their true cowardice. undefined Home of the Brave (@OfTheBraveUSA) August 6, 2025 Tired of too many ads? Remove Ads Why did Apple give it to President Donald Trump? Tired of too many ads? Remove Ads Is there a bigger meaning behind the move? FAQs Apple is apparently making headlines for reasons other than a product launch. CEO Tim Cook surprised President Donald Trump with a personalized 24-karat gold and glass tribute at the White House. The one-of-a-kind gift was presented at a press event highlighting Apple's manufacturing efforts in the United States. And, yes, it is engraved, personalized, and filled with happened at a White House press event that was all about Apple's efforts to make things in the U.S. The present isn't the usual time for a business engraved disc, created by Corning and designed by a former Marine at Apple, features Trump's name, a gold base from Utah, and Cook's signature, representing Apple's American-made innovation, as per a report by The disc was made of clear Corning glass and had the Apple logo carved into it. Trump's name was carved across the top, and the words "Made in USA" were carved into the made the centerpiece. They are the same company that makes the super-tough glass that goes into iPhones. The gold base came from Utah and gives the whole gesture a literal golden foundation as well as a luxurious says that the fact that a former U.S. Marine Corps corporal who now works at Apple designed the piece is even more impressive. This is a nod to both American craftsmanship and veterans in Cook signed the glass disc and wrote the date 2025 on it, which is a nice personal touch and a way to show your patriotism, as per a report by The timing is not a coincidence. Apple wants to move more of its production to the U.S., and Trump has long pushed U.S. tech companies to bring jobs back home. This gift was a symbolic olive branch and a smart PR also important to note that Tim Cook has a reputation for being able to work well with President Trump without being rude. Many top executives have actually read Cook's book on how to stay true to business interests while also getting involved in politics, as per a report by The statue wasn't just a showy gesture; it was a smart one. Apple made itself look both innovative and patriotic by focusing on American design, manufacturing, and veterans. At the same time, it showed that the company was still committed to making things in the US, as per a report by The Verge.A personalized Corning glass disc with a 24K gold base featuring the Apple honor Apple's manufacturing push in the United States while also strengthening ties with Trump.
Hindustan Times
27 minutes ago
- Hindustan Times
After Pakistan and Israel, THIS country nominates Trump for Nobel Peace Prize
After Pakistan and Israel, the latest country to back US President Donald Trump for a Nobel Peace Prize is Cambodia. The Southeast Asian nation on Thursday formally nominated Trump for the top peace prize, citing his "visionary and innovative diplomacy." The Southeast Asian nation on Thursday formally nominated Trump for the top peace prize, citing his "visionary and innovative diplomacy."(AP) Cambodia's decision comes after the United States brokered a ceasefire with Thailand after five days of hostilities between the neighbouring countries. What has Cambodia said in its letter for Trump? "President Trump's extraordinary statesmanship -- marked by his commitment to resolving conflicts and preventing catastrophic wars through visionary and innovative diplomacy -- was most recently demonstrated by his decisive role in brokering an immediate and unconditional ceasefire between Cambodia and Thailand," the letter said. "This timely intervention, which averted a potentially devastating conflict, was vital in preventing great loss of lives and paved the pay towards the restoration of peace," the letter added further. Also Read | Why does Donald Trump want the Nobel Peace Prize so badly? It's his self-image, and Obama, say analysts Last week, Cambodia's deputy prime minister Sun Chanthol had stated that the country would work to nominate Trump for a Nobel Peace Prize for his help in reaching a truce with Thailand. 'He should get the Nobel, not only for his work on Cambodia, but also elsewhere,' the deputy PM said. Pakistan, Israel on list of countries backing Trump. Pakistan became the first country to openly back the US President's bid for a Nobel Peace Prize. Islamabad's statement came after Trump's involvement in the ceasefire deal with India, which the US president has claimed full credit for. Also Read | 'No leader in world asked India to stop': PM shuts down Trump's ceasefire claim Despite his claims, India has denied a foreign hand in its ceasefire understanding with Pakistan after hostilities between the two nations in the aftermath of Operation Sindoor. Israel's backing for a Nobel for Trump formalised during Israeli prime minister Benjamin Netanyahu's visit to Washington DC. During this meet, the Israeli leader presented Trump with a letter, expressing Tel Aviv's support for a peace prize nomination.
Time of India
27 minutes ago
- Time of India
US-sanctioned tanker sale to India scrapyard shows dark fleet pain
The sale of a US-sanctioned tanker being pulled apart in India includes extended payment terms and measures to shield the identity of the owner, unusual clauses that point to growing pressure on older dark fleet vessels as sanctions enforcement tightens. Contract II — built almost three decades ago and sanctioned in 2019 under the name Jasmine for its involvement in the Iranian oil trade — beached in late June at Alang, a ship-breaking center in western India that has become a hot spot for dark-fleet vessels. More such ships have turned up at the hub over the past months, as penalties make it harder to keep old tankers in the illicit oil trade. An eight-page sale document seen by Bloomberg, a rare glimpse at the financial terms around a sanctioned ship's demolition, includes details of a 180-day period for payment, far longer than what people familiar with the ship-scrapping business described as the industry standard of a few days or weeks. The buyer, listed as Shantamani Enterprise LLP in the contract dated May 20, can wire-transfer partial payments, interest free, over the period of almost six months. 'No seller would accept to wait for his money so long after delivery,' said Andrew Wilson, head of research at BRS Shipbrokers, who reviewed parts of the contract. 'This indicates that the seller needs to get rid of this ship rapidly.' Bimco, a global shipping organization that creates standard contracts, said a buyer would usually make a deposit and then pay what's left of the purchase price no later than three banking days after delivery has been decided. Two calls to Shantamani went unanswered and the company didn't respond to an email with a list of questions about the purchase. The US and European Union have repeatedly added more ships to their sanction lists for supporting Russian, Iranian and Venezuelan oil exports. A year ago, there were 191 sanctioned tankers, while the tally is now at 886, or 78% of the dark fleet, according to BRS. Older sanctioned tankers, with no chance of taking on mainstream trades, now either have to compete with younger ships in the blacklisted flotilla, or else head for the breakers. Selling at a Discount The document lists Thousand Miles Shipmanagement Corp. as the seller of the vessel — a company with a registered address in the Seychelles that's linked to other US-sanctioned entities, but has no online presence or contact details. Brokers that deal with ship scrapping will sometimes set up a special-purpose vehicle to handle the final delivery of vessels sent for demolition, but the use of shell companies to shield owners is also common with dark-fleet tankers. Industry participants questioned by Bloomberg did not have any knowledge of Thousand Miles. Bank account details are almost always listed in the document too, according to industry sources. However, that information is absent from the Contract II document, which lists the payment price at 14.04 million United Arab Emirates dirhams ($3.82 million). UAE dirhams are not commonly used as currency for such deals, far more frequently settled in US dollars, they added. They asked not to be named as the matter is sensitive The payment terms and use of a shell company are measures intended to make it harder for the transaction to be traced back, while sweetening the deal enough for would-be buyers to take the risk, according to Charlie Brown, a senior adviser at United Against Nuclear Iran. It fits a trend in the trade of blacklisted ships, said Brown, who focuses on maritime sanctions enforcement at the advocacy group. As with most such deals, the tanker was sold at a discount relative to the market, based on the rate for scrap steel in India at the time the document was drafted. That could make sense for both seller and buyer, with Thousand Miles likely keen to get rid of blacklisted tonnage, and the scrapyard seeking to keep margins healthy and stay ahead of the competition at a time when the sector is battling a downturn. The process of pulling apart Contract II started this week, according to the people familiar with the industry. Demolition typically begins around a month after a ship has beached to allow for fuel removal and official authorization for scrapping.
