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Economic yielding of Europe to the United States' imperial empire

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European Economy Yielding to U.S. Imperial Domination
European Economy Yielding to U.S. Imperial Domination

Economic yielding of Europe to the United States' imperial empire

The EU-US trade deal, announced at Donald Trump's Scottish golf resort, has been analysed as a cautious agreement that avoided a threatened escalation of tariffs but included concessions that some analysts view as unfavourable to the EU.

The deal sets a 15% tariff on most EU exports to the US, down from the 30% tariff Trump had threatened earlier, while the EU agreed to accept US imports without tariffs. Notably, tariffs on steel, aluminum, and pharmaceuticals were treated differently, with some confusion over the terms. Trump said tariffs on steel and aluminum would remain unchanged globally, but EU officials indicated some tariff reductions and quotas would be part of the deal, along with zero-for-zero tariffs on aircraft, semiconductor equipment, and certain farm goods.

The European Commission President Ursula von der Leyen's decision to meet Trump at his Turnberry golf resort in Scotland was described as a significant but ironic move, reflecting the challenging personal and political nature of the negotiations. The deal was criticized by some analysts as a "surrender" because it appeared to be largely shaped on Trump's terms, with the EU forced to accept tariff impositions lower than Trump's worst threats but still a tariff increase that could hurt European exporters.

The EU agreed to purchase US$750 billion worth of US energy over three years and to invest another US$600 billion in the US economy as part of the deal. These commitments could divert resources from European development and innovation while legitimizing bilateral coercion over the multilateral, rules-based WTO system. European exporters now face tariffs nearly 10 times higher than before, and Volkswagen alone has reported a 1.3 billion euro (US$1.5 billion) hit due to higher US tariffs.

The failure of the EU to negotiate better terms exposes the fundamental weakness of European governance, as it lacks a true EU-wide governance system and is unable to translate competing national agendas into a unified position. The deal undermines the EU's foundational commitment to multilateralism and forfeits any credible path toward strategic autonomy.

The UK, acting alone, negotiated better terms than the EU as a whole. The deal has the potential to invite further challenges to European interests, and some analysts argue that it creates a structural imbalance that extends across defense, trade, and energy, leaving Europe in a state of permanent vassalization.

In summary, the EU-US trade deal avoided a full-scale trade war through tariff compromises, but its terms favoured US demands enough for some analysts to view it critically as a capitulation or surrender by the EU, reflective of Trump's aggressive negotiating style and the complex geopolitical context. The deal was seen more as damage control than a step toward a stronger strategic partnership, with uneven gains and a transactional outcome that some EU observers regarded as forced by Trump’s aggressive tariff threats and leverage.

The EU-US trade deal, with its concessions in finance and business sectors, has raised eyebrows in the realm of politics and general-news, as some analysts criticize it as a surrender that favors American demands. Despite the agreed purchase of $750 billion worth of US energy over three years and an additional $600 billion investment in the US economy, the increased tariffs on European exports could potentially hamper the EU's economy, leading to diversion of resources from development and innovation.

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