Months of warning from Brussels that higher tariffs would ultimately hurt consumers worldwide, including Americans – were nowhere to be heard yesterday. Instead, von der Leyen described the agreement – in near-Trumpian terms – as a “huge deal,” and EU officials backed her, calling it the “biggest trade deal ever.”
That's a hard sell. Only a few months ago, the EU was eyeing a 10 percent tariff – lower than the 15. Last night, John Clarke, a former senior European Commission official who dealt with trade and agriculture, blasted the framework as the “worst trade deal ever.” Even some MEPs from von der Leyen’s own centre-right family, have criticised the outcome as mere damage control, warning that it hurts European industry.
Still, national leaders who pushed the Commission not to retaliate – including Germany’s Friedrich Merz and Italy’s Giorgia Meloni – gave positive reactions to the deal, stressing the importance of maintaining stability. French President Emmanuel Macron, who pushed for a tougher approach to negotiations, remained notably silent Sunday night.
With some details still to be ironed out, von der Leyen pointed to several micro-wins.
Compared to the tariffs that Japan, Canada and Mexico are facing, the EU deal might not end up looking too bad. Von der Leyen said she has secured zero tariffs on aircraft and other goods, a list that could grow. Looming US tariffs on European pharmaceuticals will be capped at 15%, although how high they go elsewhere remains unclear. And while some US agricultural imports could now face zero tariffs – it is not yet known which ones - most of the EU’s existing protections appear intact.
There is also more at stake than just trade in goods, which represent only part of the EU-US relationship. Europe depends on America for security and wants to keep Trump onside when it comes to Ukraine.
All in all, many in Brussels may soon regret not pushing back harder when Trump first imposed tariffs earlier this year, especially if the US ups the ante when talks continue over the details.
Von der Leyen and defenders of the deal have underlined that stability is now the order of the day. But as always, that depends on Donald J. Trump.
Euractiv’s Thomas Møller-Nielsen has the full breakdown of what’s been announced so far.
NGOs defy Brussels over lobbying clause
Most non-governmental organisations ignored the Commission's request to reword their funding agreements following an outcry over EU money being used to lobby MEPs.
According to a 24 July letter, seen by The Capitals, all 28 NGOs that received money under the EU’s LIFE funding programme did not update their grant agreements, though they were perfectly within their rights, as the contracts have now expired, Budget Commissioner Piotr Serafin informed the Parliament's anti-fraud chief Niclas Herbst in the letter.
Under pressure from right-wing lawmakers, Serafin acknowledged earlier this year that "it was inappropriate for some services in the Commission" to oblige "NGOs to lobby members of the European Parliament specifically." The Commission has since issued updated guidance.
Of the 30 NGOs receiving funding to 2027 from the Commission’s health directorate, only half have requested their contracts be amended in line with the new guidance, the letter notes.
The Commission “considers that it has exhausted all legal and practical possibilities to ensure alignment,” the letter states. A new investigative team in Parliament, led by the EPP’s Dirk Gotink and ECR’s Carlo Fidanza, will get to work examining more contracts after the summer.
Merz pushes Netanyahu to secure ceasefire
In a call on Sunday, German Chancellor Friedrich Merz urged Israeli Prime Minister Benjamin Netanyahu to do everything in his power to secure an immediate ceasefire in Gaza and allow more humanitarian aid to reach civilians. Germany will consider taking steps to contribute to that effort, in coordination with France, Britain, the US, and Arab states, a government spokesperson said, without specifying what those measures might entail.
Their conversation comes amid mounting pressure for a resolution to the conflict in the Middle East. Last week, Emmanuel Macron announced that France will move to recognise the state of Palestine, becoming the first member of G7 to do so.
Orban threatens to block EU budget
Hungarian Prime Minister Viktor Orbán on Saturday threatened to block the EU’s proposed €2 trillion long-term budget unless Brussels releases suspended funds tied to a long-running rule-of-law dispute.
Speaking at a summer event, Orbán also lashed out at EU support for Ukraine. Meanwhile, opposition challenger Péter Magyar has pledged to restore ties with the EU and NATO if elected. Read more.
