EU Commission President von der Leyen defends custom agreement with Trump administration

The European Union (EU) and the United States have reached a landmark trade agreement, marking a significant shift in European trade relations. The deal, while not legally binding, aims to prevent escalation and confrontation, as emphasised by European Commission President Ursula von der Leyen.

In a move to strengthen European trade relations, von der Leyen announced that the EU has committed to purchasing $750 billion worth of US energy by the end of President Donald Trump's term. Additionally, the EU has promised to invest another $600 billion in the US in the coming years.

However, not everyone is pleased with the deal. SPD leader Lars Klingbeil has criticised the agreement, stating that it leaves the EU in a weak position with 27 states and 450 million citizens. Klingbeil wishes for the development of European strength and no longer sitting at the kids' table.

Under the agreement, tariffs on US industrial goods will be completely abolished. European automakers can expect a US tariff of 15% instead of the current 27.5%. Barriers to the import of certain food products will also fall.

Von der Leyen defends the customs compromise, writing that with retaliatory tariffs, a trade war with negative consequences for employees, consumers, and industry could be ignited. She also emphasises that a trade war between the two largest democratic economies would have been celebrated in Moscow and Beijing.

The EU has recently concluded trade agreements with Mexico and Mercosur and deepened relations with Switzerland and the United Kingdom. The EU also aims to reach an agreement with Indonesia by the end of the year and with India by the end of 2020. However, the EU must fear that Trump may unilaterally raise tariffs again if agreements are not implemented.

Despite the criticisms, the agreement is seen as a "conscious decision - stability and predictability instead of escalation and confrontation." It is a step towards a more balanced relationship between the EU and the US, providing a foundation for future negotiations and strengthening the global economy.