EU faces backlash from France and Germany over US trade deal

The EU faces criticism from French and German leaders regarding a recent trade agreement with the US.

Backlash over EU trade deal highlights divisions in Europe

The EU-US trade deal has led to a significant backlash within Europe. French Prime Minister François Bayrou criticized the accord, claiming that the bloc had "resigned itself into submission." His comments reflected the sentiments of far-right leaders in France and Germany, who deemed the deal a display of European weakness. The agreement imposes a 15 percent tariff on most EU exports, causing concern among industry leaders. Alice Weidel, co-leader of Germany's Alternative for Germany party, labeled the deal a "slap in the face to European consumers and producers." Despite the criticism, the deal increased confidence among investors, pushing the Stoxx Europe 600 index to a four-month high. The euro, however, weakened amid the uncertainty surrounding global trade. European Commission President Ursula von der Leyen emphasized that this deal would bring certainty to both citizens and businesses across the Atlantic.

The backlash against the EU-US trade agreement illustrates deep divisions within Europe, particularly between established political parties and rising populist movements. The criticism from leaders like Bayrou and Weidel reveals a growing concern about national sovereignty and trade policy. While financial markets reacted positively to the deal, suggesting investor support, the mixed domestic responses showcase a potential risk for the EU's unity. As Europe navigates its trade relationships in a shifting global landscape, the pressures from both the far right and traditional political entities may complicate future negotiations.

Highlights

As Europe assesses its trade policies, the implications of this deal will resonate across the continent.