U.S. Trade Deal Marks Economic Decline for European Union, According to Peter Boehringer
In a significant development, the USA and EU have finalized a landmark trade agreement in late July 2025. This deal, set to take effect from August 1, 2025, establishes a new baseline for US-EU trade cooperation, aiming to boost competitiveness, ensure fair global trade, and enhance supply chain resilience.
Key elements of the agreement include a 15% tariff ceiling on most EU exports to the US, including cars and car parts. While 50% tariffs on EU steel, aluminum, and copper remain, new tariff rate quotas have been introduced to reduce these tariffs to historic export levels. The EU has committed to purchasing $750 billion worth of US energy products over three years and making $600 billion in investments in various US sectors by 2029.
The agreement also covers digital trade barriers, maintaining zero customs duties on electronic transmissions and prohibiting network usage fees. US tariffs on EU aircraft, aircraft parts, certain chemicals, drug generics, and natural resources will revert to pre-January 2024 levels, signalling tariff rollbacks in specific sectors.
However, the reaction of the Alternative for Germany (AfD) to this trade agreement is not documented in the available sources.
This agreement, according to Boehringer, deputy federal spokesperson of the AfD, represents a "complete surrender of independent trade policy" by the EU. The deindustrialization of the EU and the high dependencies on the US are concerns that have been raised. The potential for significant job losses for EU-based companies is another point of contention.
On the other hand, the EU's actions are seen by some as a response to the extreme tariffs imposed by the Trump administration. The agreement could be interpreted as a step towards an interest-driven economic, trade, and foreign policy for Europe.
Ursula von der Leyen, President of the European Commission, seems willing to accept long-term imbalances in transatlantic trade. However, the question remains whether this path of further entrenching these dependencies is the right one for both parties.
In conclusion, this new US-EU trade agreement involves tariff reductions, large EU purchases of US energy and defense products, significant EU investments into the US, and collaboration on economic security and trade barriers. As the implications of this agreement unfold, it is crucial for both parties to consider the potential impacts on their economies and industries.
Politics surrounding the new US-EU trade agreement have sparked debate, with the Alternative for Germany (AfD) questioning the deal as a "complete surrender of independent trade policy." The deindustrialization of the EU, high dependencies on the US, and potential job losses are concerns raised by the AfD. On the other hand, some view this agreement as a response to the extreme tariffs imposed by the previous administration, leading towards Europe's interest-driven economic, trade, and foreign policies.
