EU and US Strike High-Stakes Trade Deal to Dodge Tariff War—But at What Cost?

The United States and European Union have reached a major trade agreement that imposes a 15% baseline tariff on most EU goods entering the US, averting a potentially devastating trade war. While the deal is being hailed by some as a necessary compromise, European leaders—especially from France and Germany—have criticized it as a capitulation to US demands. The agreement includes commitments for the EU to purchase large amounts of American energy and military equipment, though experts question the feasibility of these pledges. Key industries like pharmaceuticals and autos are bracing for higher costs, and the deal leaves several issues unresolved, including the future of tariffs on certain goods. Despite relief that a trade war was avoided, the deal has sparked debate over its fairness and long-term impact on both economies.