US-EU trade deal is a ‘dark day’ for Europe, says French PM

Donald Trump and European Commission President Ursula von der Leyen announced a US-EU trade deal to avoid escalating tariffs. The agreement imposes 15% tariffs on nearly all European exports to the US, including cars. This rate is roughly triple the current average tariff of 4.8%, but it avoids the threatened punitive 30% import duties that Trump had set a deadline for by August 1st.

Reactions within the EU were deeply divided. French Prime Minister François Bayrou strongly condemned the deal, calling it a "dark day" for the EU and accusing the bloc of capitulating to Trump's threats and resigning itself to submission. French President Emmanuel Macron remained silent on the agreement, highlighting potential divisions. In contrast, German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni welcomed the deal as averting a worse outcome. Merz acknowledged it would cause "substantial damage" to Germany but stated no better result was achievable, preventing a "needless escalation" and a damaging trade war. Meloni emphasized it avoided "potentially devastating" consequences from a trade escalation. European Trade Commissioner Maroš Šefčovič hailed it as a "breakthrough". Spanish Prime Minister Pedro Sánchez offered support but "without any enthusiasm".

Following the announcement, European stock markets reacted positively at the start of trading on Monday, reaching a four-month high. Relief over the deal boosted Germany's Dax by 0.86%, France's Cac 40 by 1.1%, and lifted the pan-European Stoxx 600 index to its highest level since late March.