Trump vs. Europe: Guess Who Blinked
Trump and von der Leyen announce a major political deal to avoid a US-EU trade war.
It’s not a full FTA, but sets the tone for future tariffs, energy, and defense trade.
US imposes 15% tariffs on most EU goods (e.g., cars, semiconductors), but keeps exemptions for aircraft, drugs, and key raw materials.
EU commits to $600 billion in US investments and $750 billion in energy purchases over 3 years.
EU lowers barriers for US agriculture, autos, and arms. Some US exports to get zero tariffs.
Trump: Calls it the “biggest deal ever.”
EU: Mixed—Germany and Italy relieved; France calls it “unbalanced.”Avoids tariff war, boosts US energy/defense sectors.
EU exporters face higher costs and tough competition.
Deal may test EU unity; some call for bilateral deals.
Germany’s Merz:
Tariffs will cause „significant damage” to the German economy.
German carmakers are expected to lose €10 billion due to Trump’s new tariffs.
Mercedes-Benz’s cash flow may drop from €9.4B to €3B, VW from €7.1B to €3.5B, BMW from €4.8B to €4.4B.
Tariffs will raise export and supply chain costs.
Audi cut its profit forecast; Porsche’s Q2 profit fell 91%.
German industry leaders warn the EU is facing a heavy blow and losing global competitiveness.
Z powodu nowych ceł Trumpa, niemiecki przemysł samochodowy spodziewa się strat rzędu 10 miliardów euro.