Europe’s Costly Compromise: Trump’s trade win another blow to the green deal?

Articles 28 Jul 2025

There are many details missing from the trade agreement between the USA ????????and the EU and due to legal grey areas and technicalities, it's nearly impossible to assess the full impact at this stage.
But one thing is clear: the early headlines paint this as a *win for Trump*.

*The Financial Times* summarizes it bluntly:
“Most European exports — including semiconductors, cars, and pharmaceuticals — will now face a 15% tariff instead of the 30% initially threatened by Trump.”
In return, the EU will *open its markets to American exports with zero tariffs*. Sounds balanced? Not quite.

Trump also claims the EU has agreed to:
Spend an additional **\$750 billion** on US energy products (read: fossil fuels & nuclear)
Invest **\$600 billion** directly into the US economy
Buy a "large amount" of US military equipment

 no doubt the deal is likely to divert EU resources *away* from crucial domestic priorities like the green transition and social investment, already politically shaky.

Making balanced deals with Trump? Mission almost impossible. But expecting good compromise without a fight? Unrealistic and naive.

Still, it’s unfair to blame the European Commission alone. True, internal divisions and the usual German-centered inertia played a role. But let’s not forget:
 **Merz** and **Meloni** (a close political ally of Trump) actively opposed using existing tools for a tougher EU stance — unlike what we saw from Canada or China.

 The full picture will emerge over time, but the early signs are troubling. We're looking at:
 Deepened dependence on fossil fuels; Barriers to a common EU defence strategy (hello, "Buy American"); stop to global minimum tax for US multinationals; Risk of undermining EU standards on food safety, chemicals, and more

All this comes at a **high cost for the EU** — economically, strategically, and politically.

Be prepared! This deal should *not* derail the energy transition, nor justify blind, short-term not targeted subsidies that leave Europe weaker in the long run.
 Ultimately, even if it seems today a far away perspective the real solution lies in reforming the EU:
 A democratic, federal structure
 No national vetoes
 A real budget
Only then can we act decisively and collectively — without the burden of endless negotiations, limited resources, and internal divisions.

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