EU - US "deal" : a loud alarm bell for a more sovereign Europe

Author: Hugues Stéphane Beaudouin

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EU US Trade Deal

The Renew Europe Group deeply regrets the outcome of negotiations between the EU and the US, which, whilst providing temporary stability to economic actors threatened by reckless American tariff escalation, risks creating imbalances and unwelcome dependencies. These talks were obviously political negotiations and not traditional trade negotiations.

Valérie Hayer, President of Renew Europe, said :

“We have definitively entered a new era. In this protectionist world, we must safeguard our DNA and stand firm in defending multilateralism. At the same time, we must not hesitate to use the levers at our disposal to assert our position—especially when we have the tools and the power to do so, starting with the Anti-Coercion Instrument.”

Renew Europe emphasises that significant uncertainty remains regarding the precise content of the EU-US trade agreement and calls for urgent clarification to avoid conflicting interpretations and to assess the deal's implementation potential.

MEP Karin Karlsbro (Liberalerna, Sweden), Renew Europe’s standing rapporteur on EU-US trade relations and Vice-Chair of the Committee on International Trade (INTA) stated:

"While disappointed by certain aspects of the EU-US trade deal, we recognise that higher tariffs in an already tense global economy help no one. Businesses deserve clarity, but not at the cost of rules-based and open trade. It is positive that the agreement includes a broad list of goods with zero tariffs, and that this list remains open for further additions. The EU must remain open for business and work to strengthen our global partnerships, leading by example in promoting open, fair, and rules-based trade."

Renew Europe regrets that the free trade principles that have underpinned transatlantic prosperity since the end of World War II are being systematically dismantled by a United States that has chosen economic coercion over cooperation and complete disregard for WTO rules.

This represents a structural shift that demands immediate and comprehensive European responses. The risk of European economic and political marginalisation grows with each concession made without reciprocal commitments from our American partners.

MEP Marie-Pierre Vedrenne (Modem, France) Renew Europe coordinator for the Committee on International Trade, emphasised:

"Finding an agreement with the United States is important, but not at any price. Our sovereignty, our interests, our businesses, and our jobs are not negotiable. We must acknowledge that our relations with the current US administration will continue to be volatile and unpredictable. Europe must prepare for this reality and assert our power more than ever before."

The agreement's most troubling aspect is its inherent asymmetry. While providing temporary relief, it establishes dangerous precedents for future negotiations with both the United States and other trading partners worldwide. This imbalanced approach risks signaling that Europe can be pressured into unfavorable terms, potentially weakening our negotiating position globally.

The economic implications are stark. European goods will face significant tariff burdens while European investments flow toward American markets – resources that could be directed toward strengthening our own economic foundations.

This dynamic contradicts expert recommendations to reduce European capital flight and invest in domestic competitiveness.

The current situation represents both an economic and political challenge. Responding through further concessions will only encourage external predation while fostering a rejection of European integration within our own borders.

Europe possesses unprecedented economic power: 27 countries, 450 million consumers, and the world's second-largest economy. Yet we continue to behave as a political dwarf despite our economic giant status. This contradiction must end.

Renew Europe refuses to accept that temporary stability justifies long-term strategic weakness. The lessons from this negotiation are clear: Europe must urgently develop new trade partnerships, strengthen our internal resilience, and demonstrate our willingness to use available tools to defend our interests.

Renew Europe finally stresses that an agreement is only meaningful if both parties respect and implement it consistently. Given the current ambiguity surrounding key provisions, Renew Europe cannot consider this deal as "written in stone." We hope that the agreement will be formally submitted for parliamentary ratification, allowing proper democratic scrutiny

Europe's future depends on our collective ability to transform this challenging moment into an opportunity for renewed strength and unity. The time for half-measures has passed.

Contact our MEPs

If you want to help, contribute or have important information to share
Valérie Hayer
Karin Karlsbro

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