The leadership of the European Union on Sunday struck a deal with U.S. President Donald Trump that will leave tariffs significantly higher for many of the bloc's exports—including cars, pharmaceuticals, and semiconductors—and at 50% for steel and aluminum.
News of the deal was met with sharp criticism, including from some European officials. François Bayrou, France's prime minister, wrote on social media that "it is a dark day when an alliance of free peoples, gathered to affirm their values and defend their interests, resolves to submission."
Nick Dearden, director of the United Kingdom-based advocacy group Global Justice Now, warned that European Commission President Ursula von der Leyen "has just handed Trump the biggest victory he could hope for."
"We will all pay the price because in the process, she has strengthened him and his fascist project. Deeply depressing," Dearden wrote, arguing that the deal "simply empowers the bully" and likely won't last.
In her statement announcing the agreement with Trump, von der Leyen suggested the deal would avert further escalations from the U.S. president and bring "stability" to markets unsettled by his erratic threats.
"Today with this deal, we are creating more predictability for our businesses," she said. "In these turbulent times, this is necessary for our companies to be able to plan and invest."
The sweeping 15% tariff on E.U. products entering the U.S. is half the rate that the president threatened to impose earlier this month, but it is far higher than the estimated 1.5% rate prior to Trump's second White House term. The E.U. is the United States' largest trading partner.
Cailin Birch, global economist at the London-based Economist Intelligence Unit, told CNBC that while the deal represents "a climb down from a much worse place," the 15% tariff "is still a big escalation from where we were pre-Trump 2.0."
Wolfgang Niedermark, a board member of the Federation of German Industries, called the deal "an inadequate compromise" that "will have a huge negative impact on Germany's export-oriented industry."
Trump and his team wasted no time bragging in bombastic terms about the agreement. Trump called it "probably the biggest deal ever reached in any capacity, trade or beyond trade," while the president's deputy chief of staff gushed that it is "impossible to overstate what a staggering achievement President Trump delivered for America today."
"Stephen Miller is boasting about Trump hitting us with a HUGE tax increase," responded economist Dean Baker, alluding to the fact that tariffs are often passed to consumers in the form of higher prices.
As part of the agreement, the E.U. pledged to buy $750 billion worth of U.S. energy over three years—including LNG and oil.
Andreas Sieber, associate director of policy and campaigns at 350.org, said in a statement Monday that "it's deeply shortsighted to see the E.U. strike a so-called 'deal' with the U.S. that locks us into expensive, polluting gas."
"Fossil gas is not only worse for the climate than coal, it comes at a higher cost," said Sieber. "This risks locking Europe into decades of fossil fuel dependence, volatile energy bills, and accelerating the wildfires and flooding already wreaking havoc across the continent. While Trump celebrates this as a win, communities on both sides of the Atlantic are suffering with deadly climate impacts."