"A Solid Agreement, Though Not Perfect"
Stability Secured with a 15% Tariff Cap
Clear Limits Set for Auto and Pharmaceutical Tariffs
European Commission President Ursula von der Leyen defended the trade agreement with U.S. President Donald Trump, stating that it was a choice for stability rather than an escalation of a trade war.
In an op-ed to be published in the August 25 edition of the German daily Frankfurter Allgemeine Zeitung (FAZ), von der Leyen wrote that the agreement was "a conscious decision to choose stability and predictability, not heightened tensions or confrontation." She published a similar op-ed in the French daily Le Figaro on August 24.
In her column, she noted, "Imagine if the two major economies of the democratic world had failed to reach an agreement and entered into a trade war. The only places that would have rejoiced in such a scenario would have been Moscow and Beijing."
Von der Leyen also referred to the 15% all-inclusive tariff rate, saying, "It is not perfect, but we have reached a good agreement." She warned, "If we retaliated by imposing tariffs, we would risk triggering a costly trade war, which would negatively affect our workers, consumers, and industries."
She further argued that even if the EU were to impose retaliatory tariffs against the United States, "it would not change the reality," adding, "The U.S. would continue to maintain a higher and more unpredictable tariff system." She thus defended the EU's decision.
As an achievement of the trade agreement, she highlighted the clear establishment of tariff caps on automobiles and pharmaceuticals. Von der Leyen stated, "For most EU products, especially automobiles and pharmaceuticals, we have set a clear limit of 15%." She evaluated that this "provides predictability and security for millions of Europeans whose livelihoods depend on trade with the United States."
She also emphasized securing tariff exemptions for strategic products such as aircraft parts and generic medicines, saying, "These are essential sectors for supporting European competitiveness."
Additionally, von der Leyen mentioned the need to expand intra-European trade. She explained, "Currently, trade volume among EU member states is less than half of that with the United States," and stressed that "completing the European single market through streamlined administrative procedures and the development of cross-border services is an important long-term task."
According to the Associated Press, there has been criticism that the European Commission granted U.S. companies more favorable terms than those given to EU companies. However, it was explained that the EU accepted the agreement because the United States had announced plans to impose a 30% tariff starting August 1, significantly increasing the risk of a trade war.
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