Brussels, Jul 29 (AP) France's prime minister has described the recent developments as a "dark day" for the European Union and sees it as a “submission” to US tariff demands. Commentators expressed that EU Commission chief Ursula von der Leyen's handshake with President Donald Trump was akin to capitulation. The situation underscores Europe's significant reliance on the United States, extending beyond just trade relations.
Von der Leyen, echoing Trump, celebrated the accord that establishes US tariffs on most European exports at 15%—a 10% increase from current levels—as "huge." Her team sent messages to reporters calling the pact, which begins implementation on Friday, the "biggest trade deal ever." Just a month after NATO Secretary-General Mark Rutte endeared himself to Trump by addressing him as "daddy," Europeans once again found swallowing additional costs more agreeable than risking their relationship with the US.
“It's not only about the trade. It's about security, Ukraine, and the current geopolitical volatility. I cannot go into all the details,” mentioned EU Trade Commissioner Maros Sefcovic to reporters on Monday. He reiterated that the deal was not solely about trade, following an hour-long meeting where the agreement was finalized after Trump played golf with his son at a course he owns in Scotland.
The issue of Europe's security dependency is increasingly significant. Europe relies heavily on the US for defense, a dependency that is critical, especially with the ongoing conflict involving Russia and Ukraine. Fears are high among US allies that if President Vladimir Putin is victorious, he might target other nations. This threat has led to European countries purchasing US weapons to help aid Ukraine's defense efforts, with some prepared to send air defense systems and replace them with American equipment.
“We're going to be sending now military equipment and other equipment to NATO, and they'll be doing what they want, but I guess it's for the most part working with Ukraine,” said Trump on Sunday, his tone suggesting ambivalence about America's role in the alliance. European nations are also anxious about a potential reduction in US troops stationed in Europe, which the Pentagon is expected to announce by October, with approximately 84,000 US personnel currently serving in European locations.
Meanwhile, Trump imposes tariffs on US NATO partners citing concerns for US security interests through Section 232 of the Trade Expansion Act—logic perceived as unreasonable from Europe's perspective. The European Union finds itself in a predicament due to this dependency on the US for security needs, intertwined deeply with NATO and the ongoing situation in Ukraine, according to Niclas Poitiers from the Bruegel research institution.
Part of the agreement involves acquiring American oil and gas, as the EU works on reducing its dependency on unreliable Russian energy supplies amid the protracted Russia-Ukraine conflict now in its fourth year. Von der Leyen highlighted that purchasing US energy products will aid in diversifying Europe's energy supply sources, replacing Russian gas and oil with American liquefied natural gas, oil, and nuclear fuels.
As Europe weans itself off Russian energy dependence, it concurrently faces challenges in ending its reliance on US security. The Trump administration has indicated a shift in its priorities towards Asia, the Middle East, and domestic borders. This situation underscores why European allies agreed at NATO's recent summit to commit hundreds of billions more to defense over the coming decade to ensure their own security and maintain America's involvement.
The diplomacy throughout these negotiations wasn't always seamless. Rutte texted Trump, declaring, “Europe is going to pay in a BIG way, as they should, and it will be your win,” a message Trump quickly publicized on social media. Rutte dismissed any embarrassment or concern over the message being made public, acknowledging that there was nothing in it that needed to remain confidential.
Von der Leyen's demeanor during her meeting with Trump was not overly deferential; at times, she looked down or smiled quietly. She chose not to challenge Trump's remark that only America provides aid to Gaza, although the EU is the largest aid supplier to Palestinians. Faced with Trump's threat of further tariffs on European exports—whether genuine or not—and the risk of a trade conflict amidst the largest European conflict in decades, the 15% tariff might have seemed a manageable cost.
“In terms of the economic impact on the EU economy itself, it will be negative,” Poitiers noted. “Still, it's not comparable to the scale of the energy crisis following Russia's invasion of Ukraine or even the challenges posed by COVID.” While this situation is an adverse economic shock, it is one that Europe can manage.
The sustainability of this agreement remains uncertain. (AP) SCY SCY
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