European leaders specific considerations over new commerce take care of US – Europe reside

Blended reactions to EU-US deal in Germany as aid mixes with exasperation and disappointment

Kate Connolly

Reactions from Europe’s largest financial system over the Trump tariff deal hatched in Turnberry, Scotland on the weekend, have inevitably been blended, with some respiratory a sigh of aid that there’s lastly a concrete determine to work with, however others exasperated, and warning that with such an unpredictable US president, it might be foolhardy to see the determine agreed upon as set in stone.

MPs from Ursula von der Leyen’s personal political heimat, the CDU, in addition to main German economists have reacted with disappointment and urged warning.

Manfred Weber, chief of the European Folks’s Celebration within the European parliament, described the deal as “merely damage limitation,” in an interview with Bild, and nothing to be celebrated.

The consequence, he informed the tabloid, “is certainly better than many had feared.” No less than, he mentioned, “it gives the European economy planning security”. He mentioned the deal had made clear the significance of forging commerce offers with different elements of the world, and had not less than strengthened the significance of an built-in single market (at the same time as non-EU member UK has struck a greater deal).

The financial coverage spokesman for the CDU/CSU, Andreas Lenz, mentioned 15% was certainly higher than the 30% beforehand prompt, however was a “painful compromise”, which harmed each financial system and shoppers.

Probably the most constructive side of the settlement for the German financial system, in fact, is that the present 27.5% tariffs on vehicles, will probably be decreased to fifteen%

Chancellor Friedrich Merz clung to the automotive customs minimize in his try and put a constructive spin on the entire deal, which he mentioned would not less than keep away from an pointless escalation in transatlantic commerce relations.

“With this agreement, we have succeeded in averting a trade conflict that would have hit the export-oriented German economy hard. This applies particularly to the automotive industry, where the current tariffs will be almost halved from 27.5 percent to 15 percent. It is precisely here that the rapid reduction of tariffs is of utmost importance,” he mentioned on Sunday.

Nonetheless, the shortage of a deal on aluminium and metal, presently anticipated to be 50%, hangs closely over financial movers and shakers this morning.

Wolfgang Niedermark, international commerce knowledgeable on the Federation of German Industries (BDI), known as it an “additional blow” and mentioned it despatched “a fatal signal to the closely intertwined economies on both sides of the Atlantic.”

Jakub Krupa

We should always get extra element on the deal from EU commerce commissioner Maroš Šefčovič as he’s anticipated to talk on the European Fee’s press convention on the high of the hour.

We are going to deliver it reside on the weblog.

Lisa O’Carroll

in Brussels

The zero charge tariff on US imports won’t apply to delicate agricultural merchandise, senior officers in Brussels have confirmed.

Particularly this implies exports from the US of beef, rice, ethanol, poultry, and sugar aren’t included within the deal clinched final night time.

The concessions on tariffs have solely been made on agricultural merchandise that the EU doesn’t develop or produce together with nuts.

15% tariff to use to 70% of EU exports to US

Lisa O’Carroll

in Brussels

The 15% tariff agreed within the EU-US deal will apply to 70% of all exports to the US value €380bn, officers have mentioned.

Charges on pharma and metal are nonetheless being negotiated and aren’t anticipated to conclude by Friday, Donald Trump’s self-imposed deal for a deadline. Whereas the talks proceed, a zero tariff charge will proceed to use on pharma and 50% on metal.

Wine and spirits are nonetheless being negotiated with talks extra superior on spirits than wine.

The EU will decrease what it calls “nuisance” or negligible tariffs on a bunch of merchandise together with non-sensitive agricultural merchandise value about €70bn a yr.

The €600bn investments within the US, referred to within the deal final night time confer with personal investments already or about to be dedicated by personal companies. It doesn’t confer with any EU fund.

Zero rated tariffs on US exports to the US will apply to a variety of nonetheless to be finalised merchandise that embody nuts, lobster, processed fish, cheeses, some dairy merchandise, and pet meals.

Exports to the US that will probably be zero rated together with plane and plane elements, some medical gadgets and a few non-available pure sources reminiscent of cork used as bottle stoppers and flooring.

Tariffs on prescribed drugs won’t ever go above 15%, EU officers insist

Lisa O’Carroll

in Brussels

Tariffs on prescribed drugs exported from the EU to the US won’t ever go above 15% below the deal struck final night time between Donald Trump and European Fee president Ursula von der Leyen.

Senior EU officers have mentioned they are going to stay zero rated till such time as Trump completes his 232 nationwide safety investigation into prescribed drugs.

However if he does, on the finish of that, resolve to impose tariffs on EU imports, they are going to be set at a high degree of 15%.

This explains the contradictory statements final night time between Trump and von der Leyen with the previous claiming medicines weren’t within the tariff deal and the European Fee chief saying they have been.

On metal, EU officers have confirmed, they’re now going to open negotiations on a quota.

This isn’t for presidential negotiations, they’ve mentioned.

On worth of deal, EU officers have mentioned that the 15% tariff will apply to 70% of all exports to the US.

French prime minister François Bayrou joined the rising record of European leaders expressing their less-than-enthusiastic reactions to the EU-US commerce deal.

In his first response on social media, he mentioned:

Von der Leyen-Trump Settlement: it’s a sombre day when an alliance of free peoples, united to affirm their values and defend their pursuits, resigns themselves to submission.

Senior Zelenskyy aide Andriy Yermak posted a video of a tower bloc in Kyiv hit by Russian drones saying “this is how Putin responds to calls to end the war and sit down at the table” after one other night time of assaults on Ukrainian cities.

324 Russian drones and seven missiles have been reported in a single day.

Yermak sought to extend strain on Russia, saying “there is no alternative to sanctions, increasing Ukraine’s long-range capabilities, and tough actions against Putin’s entourage and himself.”

[Putin] needs nothing however warfare and Ukraine’s defeat. And there will probably be no defeat.

Yermak additionally warned that Russians have been additionally “testing Nato’s reactions” with drones crossing into different international locations, warning that these “signals cannot be ignored” – a reference to the sooner drone incident in Lithuania (10:20).

An unmanned drone is believed to have entered the Lithuanian airspace in a single day from Belarus, a second this month, with residents within the capital metropolis of Vilnius reporting the attribute sound and later receiving an alert from authorities in regards to the incident.

Locals have been informed to be cautious and to not method the thing, which was believed to have crashed within the early hours of this morning.

It was earlier sighted near Vilnius, flying at an altitude of 200 meters, Lithuanian media reported, posting a grainy footage of the thing.

The seek for the drone continued this morning, and authorities informed reporters that they had no readability on whether or not the thing posed any hazard.

However defence miniser Dovilė Šakalienė mentioned that further sources will probably be directed to watch the Lithuanian-Belarusian border.

If confirmed, it might be a second case of an unmanned flying object getting into Lithuanian airspace from Belarus after a decoy Gerbera drone crashed close to the border firstly of July.

EU deal seen as victory for Donald Trump – snap evaluation

Lisa O’Carroll

in Brussels

Whereas EU leaders can breathe an enormous sigh of aid {that a} commerce take care of the US is completed, the settlement is being extensively seen as a victory for Donald Trump.

A number of industrial banks have informed shoppers this morning it’s an “asymmetrical” deal favouring the US over the EU.

As if to underline the contrasting fortunes of China which imposed retaliatory tariffs from the start, Trump has simply made additional concessions to Beijing.

It emerged on Monday, that Washington has paused curbs on tech exports to China to keep away from disrupting commerce talks with Beijing and help Trump’s efforts to safe a gathering with President Xi Jinping this yr.

The trade and safety bureau of the US Commerce Division, which oversees export controls, has been informed in current months to keep away from robust strikes on China, the newspaper mentioned, citing present and former officers.

The EU acknowledges that the deal is worse than the zero-zero tariff deal it supplied Trump in April.

“Fifteen percent is not to be underestimated, but it is the best we could get,” European Commision chief Ursula von der Leyen admitted final night time.

Stability and predictability could be returned to Europe’s companies and markets, she mentioned describing the deal in Trump like phrases as “huge”.

However Renew group MEP Sandro Gozi described the deal as “unbalanced and dangerously shortsighted.”

Hildegard Müller, president of the German automotive trade federation, the VDA, mentioned “further escalation” of a tariff and doubtlessly commerce warfare has been averted however added the deal would push prices up for an trade, already struggling towards Chinese language rivals.

“The US tariff of 15 per cent on automotive products will cost German automotive companies billions annually and place a burden on them in the midst of their transformation.”

And monetary establishments?

“Is this a good deal for the EU? Probably not. The outcome is heavily asymmetrical, and it leaves US tariffs on imported EU goods at much higher levels than EU tariffs on imports from the US,” Unicredit mentioned in a observe to shoppers.

Morning opening: The artwork of the deal

Jakub Krupa

Excellent news: the EU has a brand new commerce take care of the US.

Dangerous information: There don’t appear to be many individuals who suppose it’s a very whole lot.

The framework settlement, agreed by European Fee president Ursula von der Leyen and US president Donald Trump at a late assembly in Scotland, manages to avert a harmful transatlantic commerce warfare, imposing a 15% import tariff on most EU items – half the threatened charge.

German chancellor Friedrich Merz targeted on the truth that it managed to maintain the unity of the European Union and supply some stability to companies on either side of the Atlantic, even when he would have appreciated the deal to attain extra.

Italian prime minister Giorgia Meloni mentioned she wanted to see the small print of the deal to evaluate it additional, asking questions on doable exemptions, guarantees of European funding and fuel purchases from the US, and tips on how to assist affected industries.

French Europe minister Benjamin Haddad mentioned that whereas the deal would “bring temporary stability,” it was typically “unbalanced,” calling the scenario “not satisfactory and … not sustainable.”

Not very best.

World markets responded positively, as you’ll be able to see on our enterprise reside weblog, however there may be rather more to this deal than that. It’s not enterprise as regular.

Elsewhere, I will probably be Spain the place the nation’s embattled prime minister Pedro Sánchez is because of give a summer season press convention and the newest reviews from Ukraine.

I’ll deliver you all key updates from throughout Europe at this time.

It’s Monday, 28 July 2025, it’s Jakub Krupa right here, and that is Europe Dwell.

Good morning.