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EU-US Trade Deal Faces Criticism from Germany and France

Updated: 2025-09-06 07:52 BST
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Top Lines
- Germany and France sharply criticize the EU-US trade deal, warning of economic harm.
- German Chancellor Friedrich Merz and French Prime Minister François Bayrou express strong disapproval.
- The agreement imposes a 15% US tariff on most EU imports, higher than previous levels.

What Happened
On July 28, 2025, German Chancellor Friedrich Merz and French Prime Minister François Bayrou publicly criticized the EU-US trade deal announced on July 27, 2025. Merz stated that the agreement would cause "considerable damage" to Germany, Europe, and the US itself, leading to higher inflation and affecting transatlantic trade. Bayrou labeled the deal a "dark day," accusing the EU of submitting to US pressure. The deal, negotiated by European Commission President Ursula von der Leyen and US President Donald Trump, imposes a 15% US tariff on most EU imports, a significant increase from previous levels. The euro dropped over 1% against the dollar following the announcement, and EU stocks declined, particularly in the automotive sector. (ft.com)

Why It Matters
- Economic Impact: The 15% tariff is three times the previous level, potentially leading to higher inflation and reduced trade between the EU and the US.
- Market Reactions: The euro's decline and the drop in EU stock markets, especially in the automotive sector, indicate investor concerns over the deal's economic repercussions.
- Political Tensions: The criticism from Germany and France highlights growing discontent within the EU regarding the trade agreement and its implications for European economies.

Key Numbers / Facts
- 15%: The new US tariff rate on most EU imports, up from previous levels.
- 1%: The euro's decline against the dollar following the announcement.

Timeline (Today, 2025-09-06)
- No new updates available as of 07:52 BST.

Sources
- Financial Times – Germany and France hit out at EU-US deal — published 2025-07-28 16:28 BST