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EU-US Trade Deal Faces Criticism Amid Economic Concerns

Updated: 2025-09-01 07:15 BST
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Top Lines
- European leaders express strong disapproval of the recent EU-US trade agreement.
- Analysts warn of potential economic repercussions for the Eurozone.
- The deal imposes a 15% tariff on most EU imports to the US.

What Happened
On August 30, 2025, the European Union and the United States finalized a trade agreement that imposes a 15% tariff on most EU imports to the US, a reduction from the previously threatened 30%. European Commission President Ursula von der Leyen hailed it as "the biggest trade deal ever." However, the deal has faced significant criticism from European leaders. German Chancellor Friedrich Merz described it as the "best result achievable" under the circumstances, while French Prime Minister François Bayrou labeled it a "dark day" and accused the EU of submitting to US pressure. (ft.com)

Why It Matters
- Economic Impact: The 15% tariff is three times the previous level, potentially leading to higher inflation and damaging transatlantic trade relations.
- Market Reactions: The euro declined over 1% against the dollar, and EU stocks, particularly in the automotive sector, experienced declines.
- Political Ramifications: The agreement has strained EU-US relations, with European leaders expressing concerns over the EU's negotiating position and the potential long-term effects on the bloc's economy.

Key Numbers / Facts
- 15% tariff imposed on most EU imports to the US.
- Euro declined over 1% against the dollar following the announcement.

Timeline (Today, 2025-09-01)
- 07:15 BST: European leaders express strong disapproval of the EU-US trade agreement.
- 07:15 BST: Analysts warn of potential economic repercussions for the Eurozone.

Sources
- Financial Times – Germany and France hit out at EU-US deal — published 2025-08-30 00:00 BST
- Financial Times – Investors underestimate risk from Trump's Fed attacks, say economists — published 2025-09-01 00:00 BST