Reference News Network, August 5 report: The Bloomberg News website published an article titled "Trump's US-EU Trade Agreement May Cost Europe for Years to Come" on August 1. The author is Simon Nixon. The article excerpts as follows:

At least from the European perspective, the best assessment of the US-EU trade agreement reached on July 27 can only be described as avoiding a worse outcome. The undeniable fact is that this trade agreement is a complete disaster for the EU. This agreement is a watershed in US-EU relations and may have lasting effects after the tariffs take effect.

Over the past 80 years, the US and Europe made progress in reducing transatlantic trade barriers and deepening economic ties. The current US-EU trade agreement has put an end to this progress. Almost no one could have imagined that the EU would agree to a surrender-like agreement.

History shows that it may take several years, or even decades, for the world to return to free trade.

Europe chose not to retaliate against Trump's tariffs, thus avoiding a destructive trade war similar to those in history. However, this largely reflects the deep divisions among EU member states regarding whether and how to retaliate, rather than because Europe still prefers economic orthodoxy.

The real danger is that the EU's apparent surrender to Trump undermines confidence in Brussels, which could weaken support for free trade and deeper European integration. Right-wing populist parties in Europe have already pointed to this agreement as evidence of the EU's inability to defend national interests.

Meanwhile, it is expected that industrial sectors in EU countries will be hit. The perception that the EU is an easy opponent also weakens its influence in future negotiations. If the outside world believes the EU cannot effectively defend its interests, the EU will find it difficult to claim itself as a geopolitical leader, which is crucial for the euro to play a greater role globally.

The US-EU tariff agreement ended short-term uncertainty. But in the long term, the EU seems more vulnerable to disruptive protectionism and internal criticism, and its negotiating power on the international stage will weaken. After the tariff shock subsides, the humiliation of Europe may last for a long time. (Translated by Hu Xue)

Original: https://www.toutiao.com/article/7534969658479346239/

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