France's prime minister slammed the trans‑Atlantic trade pact announced by U.S. President Donald Trump and European Commission President Ursula von der Leyen, branding it “submission” by the European Union.
What Happened: "It is a dark day when an alliance of free peoples, united to affirm their values and defend their interests, resolves to submission," François Bayrou posted on X early Monday.
The framework deal sets a blanket 15% tariff on most EU exports to the United States, which is half the 30% Trump had threatened for August 1, but still far above the low single‑digit duties European manufacturers long enjoyed. In exchange, Brussels agreed to buy $750 billion in American energy and steer $600 billion in additional investment into U.S. industry and defense goods over the next several years.
Bayrou's criticism of the deal was the sharpest in a chorus of French disapproval. European Affairs Minister Benjamin Haddad warned on X that the pact is not sustainable and urged the bloc to trigger its new anti‑coercion tool to tax U.S. digital services or bar them from public contracts.
According to a report by Reuters, French Trade Minister Laurent Saint‑Martin told France Inter radio the accord gives companies "visibility" but leaves Europe in a power struggle Trump started, adding, "Donald Trump only understands force."
Why It Matters: Supporters call the deal a political cease‑fire that spares Europe a bigger tariff shock. Trump hailed it as "the biggest deal ever made," touting fresh EU orders for American liquefied natural gas and weapons. Markets initially cheered, but economists note the 15% duty still exceeds the WTO's bound rates and could hurt EU carmakers even as it boosts some U.S. exports.
President Emmanuel Macron has remained silent, but Bayrou's move puts Paris at odds with Berlin and Rome, which welcomed the truce.
Economist Peter Schiff blasted Trump's EU trade deal as a loss for Americans, arguing the U.S. will pay 15% tariffs on most European goods and 50% on European steel, aluminum and copper, concluding, "Americans lose again." Jim Cramer said the pact failed to spark a rally because Wall Street is focused on earnings and Federal Reserve decisions, putting tariffs "dead last" on investors' priority list.
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