The US and EU narrowly avoided a trade war this week with a new deal imposing 15% tariffs on most European exports to America. But not everyone’s popping champagne 🍾. Here’s the tea ☕️.
Deal or No Deal?
After tense talks in Scotland, US President Donald Trump and EU Commission President Ursula von der Leyen struck a last-minute agreement ahead of an August 1 deadline. While tariffs rise to 15% for EU goods, the bloc will drop its tariffs on US imports to zero. Cue mixed reactions 🎭.
Europe’s Side-Eye 👀
Bernd Lange, a top EU trade official, called the deal "unsatisfactory," noting tariffs would quadruple for Europe while the US gets a free pass. Finnish Trade Minister Ville Tavio admitted it "calmed the situation" but warned: "No reason for celebration."
French PM Francois Bayrou delivered the harshest take: "A sombre day… resigns itself to submission." Ouch.
Markets Rollercoaster 🎢
The dollar surged 1% against the Swiss franc, while the euro took its biggest hit since May. Analysts say recession risks are fading, but Morgan Stanley’s Michael Zezas warned of "slow growth and firm inflation" as trade controls bite.
What’s Next?
While the deal dodges immediate chaos, experts say it’s more Band-Aid than cure. Stay tuned for how this plays out in global markets and your local grocery bill 🛒.
