Von der Leyen calls EU-US trade deal "imperfect" but necessary for stability, predictability Op-ed for Frankfurter Allgemeine Zeitung

More details of the EU's tariff agreement reached with US President Donald Trump in July emerged this week. European Commission (EC) President Ursula von der Leyen acknowledged that while the deal is “imperfect”, she stressed its importance in ensuring “stability and predictability" instead of escalation and confrontation.

"Just imagine if the two largest economic powers in the democratic world had failed to reach an agreement and started a trade war. That would have been celebrated only in Moscow and Beijing," Von der Leyen, who travelled to Washington for the trade negotiations in July, wrote in an opinion piece for the Frankfurter Allgemeine Zeitung newspaper.

The EC chief emphasised that the deal, while not flawless, is a strong arrangement addressing the 15 per cent US import tariffs. "With retaliatory tariffs from our side, we would risk fuelling a costly trade war with negative consequences for our workers, consumers, and industry."

Trump and von der Leyen wrapped up the trade deal in Scotland at the end of July through verbal commitments. The agreement was officially ratified on August 21, and more details of its provisions are now coming to light.

“Counter-tariffs on our part risk triggering an expensive trade war with negative consequences for our workers, consumers, and our industry,” she reiterated. “And any escalation cannot change one thing: the US’s commitment to its higher and more unpredictable tariff regime,” the EC head added.

The most significant aspect of the deal, von der Leyen explained, is setting a firm 15% ceiling on most EU goods, including vehicles and pharmaceutical products.

At the same time, she affirmed that Europe will keep working to broaden and diversify global trade ties. “That is why, in recent months, we have concluded trade agreements with Mexico and Mercosur [South American trade bloc], as well as deepened our relations with Switzerland and the United Kingdom. That is why we have completed negotiations with Indonesia and aim to reach an agreement with India by the end of the year,” she wrote.

According to European Commissioner for Trade Maros Sefcovic, who spoke on the details of the pact, the joint statement with the US marks a strong starting point that could expand into additional sectors over time. The commissioner described it as "the most favourable trade deal the US has offered to a trading partner to date."

The latest details indicate that once the EU enacts legislation making American products more affordable, the US will also cut or eliminate import duties on European cars and auto parts.

The only alternative, Sefcovic noted, would be a trade war. "And that doesn't help anyone."

Von der Leyen expressed satisfaction with the outcome, calling it a "breakthrough that brings clarity and new opportunities for our businesses and citizens."

By Nazrin Sadigova