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Updated: 2025-08-18 08:24 BST
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Top Lines
Germany and France sharply criticize the EU-US trade agreement, expressing concerns over its economic impact.
The deal imposes a 15% tariff on most EU imports, a significant increase from previous levels.
European stock markets react negatively, with declines in key indices and sectors.
What Happened
On August 17, 2025, the United States and the European Union finalized a trade agreement imposing a 15% tariff on most EU imports, up from the previous average of approximately 1%. The deal, announced by US President Donald Trump and European Commission President Ursula von der Leyen, aims to address trade imbalances but has faced criticism from European leaders. German Chancellor Friedrich Merz stated that the agreement would cause "considerable damage" to Germany, Europe, and the US itself, highlighting concerns over higher inflation and potential negative effects on transatlantic trade. French Prime Minister François Bayrou labeled the deal a "dark day," accusing the EU of submitting to US pressure. (ft.com)
Why It Matters
Economic Impact: The 15% tariff represents a significant increase from the previous average of around 1%, raising concerns about potential inflation and economic slowdown in Europe.
Market Reactions: European stock markets have responded negatively, with declines in key indices and sectors, particularly in the automotive industry.
Political Tensions: The deal has strained EU-US relations, with European leaders expressing dissatisfaction over the terms and potential long-term effects on the European economy.
Key Numbers / Facts
15% Tariff: The new tariff rate imposed on most EU imports by the US.
1% Previous Average: The previous average tariff rate on EU imports before the new agreement.
Timeline (Today, 2025-08-18)
08:24 BST: European leaders express strong criticism of the EU-US trade agreement, citing economic concerns.
08:24 BST: European stock markets decline, with significant drops in automotive sector stocks.
Sources
Financial Times – Germany and France hit out at EU-US deal — published 2025-07-28 16:28 BST
Financial Times – Germany and France hit out at EU-US deal — updated 2025-07-28 16:28 BST