Criticism Arises Over US-EU Trade Deal Impact on German Business and French Minister

The US-EU trade deal was finalized at Donald Trump’s golf resort in Scotland, imposing 15% tariffs on most European exports to the US, including cars. This deal averted the threat of a 30% import duty by Trump's deadline. However, it significantly increases tariffs for European exporters compared to the initial zero-zero tariff offer by the EU. Negotiations will continue on steel, aviation, and pharmaceutical exports.

German Chancellor Friedrich Merz praised the deal for preventing trade escalation, but German exporters expressed concerns. The deal was criticized by various industry groups in Germany, with the automotive sector expected to be particularly impacted.

European stock markets reacted positively to the news, with Germany's Dax and France's Cac 40 index rising. While some EU countries welcomed the deal for providing stability, concerns were raised about its asymmetrical nature favoring the US.

The deal also affects the German economy, with growth decline expected to be offset by recent stimulus measures. The EU had initially taken a tough stance but shifted to a quick deal after the Nato summit, focusing on security and defense agreements with Trump.

China, on the other hand, is still in negotiations with the US. The EU had sought compromises on steel and pharmaceuticals, with tariffs on cars, steel, and aluminum already in place. The deal maintains tariffs on EU medicine exports, with further tariffs subject to the US president's decision.