【By Guan察者网, Ruan Jiaqi】

According to CCTV News, under the threat of US tariffs, the EU chose to "surrender" on the 27th and reached a trade agreement, agreeing to impose a 15% tariff on goods exported to the US. President Trump also said that the EU would increase investment in the US by $60 billion, purchase American military equipment, and buy American energy products worth $75 billion.

Although both the US and the EU described it as a "victory," there were widespread criticisms within Europe, with France's response being particularly strong.

On Monday (the 28th) local time, French Prime Minister Bérenguer posted on social media X, strongly criticizing the EU for failing to unite and defend its own values and interests, ultimately choosing to "submit" to the US. He also called the agreement "the von der Leyen-Trump agreement," stating that the day the agreement was reached was a "dark day" (a sombre day).

French Minister of European Affairs Benjamin Haddad also expressed his concerns about the agreement on "X." He believed that the agreement would bring temporary stability to economic entities threatened by continuously escalating US tariffs, but the agreement itself was "unbalanced."

"It is clear that the current situation is neither satisfactory nor sustainable," Haddad wrote. Since the end of World War II, free trade that brought common prosperity to both sides of the Atlantic has now been abandoned by the US, which instead opted for economic coercion, completely ignoring WTO rules. This structural shift requires Europe to respond quickly, or else it may be marginalized.

Haddad also emphasized that this is a dual challenge of economy and politics. If concessions are made in response, it will only encourage external "predatory behavior" and trigger rejection of the EU among European citizens. "We can no longer be the last fool in this farce where no one follows the rules."

St.-Martin, the representative of the French Ministry of Foreign Affairs and European Trade, also criticized the agreement, saying that the EU should not have restrained itself in the power struggle instigated by Trump.

That day, he angrily stated on a French media program, "Trump only understands strength. If we had shown our ability to retaliate earlier, things might have been much better, and the agreement reached might have been quite different."

On July 27th local time, US President Trump said that the US had reached a trade agreement with the EU. CCTV News

As of now, French President Macron has not publicly commented on the agreement. This contrasts sharply with Germany's more moderate statement.

On Sunday (the 27th), German Chancellor Merkel issued a statement saying, "This agreement successfully avoided a trade conflict that would have severely impacted Germany's export-oriented economy. Although I originally hoped transatlantic trade could be further liberalized, we have successfully protected our core interests."

However, at a press conference in Berlin on Monday, Merkel also admitted that she was not "satisfied" with the negotiation results. The 15% tariff would still place a heavy burden on Germany's economy, but "obviously, there was no better outcome."

Most EU countries held similar views, generally acknowledging the imbalance of the agreement, but due to its avoidance of an escalation of the trade war and bringing some certainty to bilateral trade relations, they reluctantly chose to support it.

The Swedish Trade Minister called the agreement "the least bad option"; Spain, although "not enthusiastic," also expressed support; the Italian Prime Minister said that without seeing the details of the agreement, it was difficult to make the "best judgment"; Slovak Prime Minister Fico also warned, "The devil is hidden in the details," implying that the specific terms of the agreement might contain hidden issues. Hungarian Prime Minister Orban, who has always been at odds with von der Leyen, took the opportunity to mock, "Trump ate von der Leyen for breakfast."

On Monday, a senior EU trade official responsible for trade negotiations told journalists that if the 30% tariff had taken effect, the situation would have "been much worse." EU Trade Commissioner Šefčovič said, "This is clearly the best agreement we could reach under very difficult circumstances."

It is reported that the final agreement needs approval from all 27 EU countries. However, since trade management falls under the responsibility of the European Commission, the dissatisfaction of countries like France will not hinder the progress of the framework agreement.

Many details of the agreement remain unpublished. According to EU officials, these details will be clarified in a joint statement expected to be finalized by August 1st. In the coming weeks, both sides will further negotiate to reach a comprehensive agreement.

Due to the agreement, European stock markets opened higher on Monday, with the Stoxx 600 index reaching a four-month high, while other major indices also rose, with the technology and healthcare sectors leading the way.

Jefferies economist Mohit Kumar said, "The 15% tax rate is better than market expectations." However, European companies are still unsure whether to celebrate or mourn this deal.

As VCI President Entrop said, "Those who thought a hurricane would happen will be relieved that a storm has arrived."

"Although the escalation of conflict was avoided, both sides paid a high price. European exports are losing competitiveness. US customers will have to pay the tariffs," he added.

Several European politicians have openly stated that the EU's path of yielding to Trump began before April. Although the new agreement temporarily avoided a trade war, if the EU had taken a firm stance earlier and jointly opposed Trump's tariff threats with China rather than constantly compromising, the EU would not have been in a passive position during the negotiations and might have secured more favorable conditions.

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Original: https://www.toutiao.com/article/7532306961749000750/

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