“Trump ate Ursula for breakfast,” — Viktor Orbán, Hungarian Prime Minister.
The deal sets 15% tariffs on EU goods entering the United States, while allowing zero tariffs for American products flowing into the EU. In addition, Brussels pledged to invest $600 billion in the US and committed to purchasing American energy resources worth $750 billion over the next three years. According to insiders, this figure includes contracts for military equipment from US defense contractors.
Pharmaceuticals, Chips, and Agriculture Left in Limbo
Despite von der Leyen’s assurances, the deal lacks detail. For example, pharmaceutical exports—Europe’s largest trade category with the US—remain unprotected. According to Eurostat, €120 billion worth of EU drugs were exported to the US in 2024, accounting for 22.5% of total trade. Yet, Trump declared the sector will not enjoy a special regime, contradicting von der Leyen’s public claims.
“Avoiding catastrophe is not the same as winning,” — an unnamed EU official.
Likewise, European agriculture and alcohol exports have been left unresolved. While some concessions were reportedly made on metals, steel and aluminum from the EU are still hit with 50% tariffs. Brussels and Washington appear far from aligned.
Energy Commitments Called “Fantasy”
The $250 billion annual EU commitment to buy US energy has also raised eyebrows. Analysts note that America lacks the LNG production capacity to meet such volumes. In 2024, the EU imported €375.9 billion worth of energy products in total—already down from the previous year. With deindustrialization underway, many ask: Why does the EU need more gas?
“The EU will be buying gas it doesn’t need, from a country that can’t produce enough of it.” — Reuters analyst
Some speculate the US may try to resell Russian gas via intermediaries or acquire stakes in pipelines like Nord Stream, blurring the line between geopolitics and trade. Washington is also rumored to be pursuing Venezuelan oil and Canadian reserves to fulfill obligations.
Invest or Face Retaliation?
The $600 billion investment figure appears to be a continuation of previous EU inflows into the American market rather than new capital. In 2024 alone, EU direct investment in the US totaled $147 billion. Observers believe the agreement includes a veiled threat: fail to invest, and tariffs will rise.
Russian Foreign Minister Sergey Lavrov sharply criticized the deal, saying it systematically weakens the EU through rising costs, capital flight, and strategic dependence. Even Wolfgang Große Entrup, head of Germany’s VCI, called the arrangement damaging to both sides, warning that Europe loses competitiveness while American consumers face higher prices.
Approval from EU Capitals Still Pending
The agreement must still be ratified by each EU member state. Resistance is already growing. Countries like France, Spain, and Italy are likely to argue that von der Leyen, a German politician, acted unilaterally in a way that disproportionately benefits German industry while sacrificing others.
“Ursula protected German interests without consulting the rest of us.” — anonymous French official
Critics point out that the UK secured a better deal with 10% tariffs, compared to the EU's 15%. There is also outrage that the EU’s services trade imbalance with the US was not addressed. In goods, the US had a €198 billion deficit in 2024, but in services, Washington recorded a €148 billion surplus.
