US-EU tariff deal details deliver short-term stability, but what’s next?
European leaders hope that by de-escalating trade tensions with Trump, he might be more willing to help Ukraine out. But the situation remains fragile.
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US PRESIDENT Donald Trump and European Commission President Ursula von der Leyen announced around a month ago a US-European Union tariff framework deal. Yet, it was only last Thursday (Aug 21) that some of the deeper details of the agreement were finally released.
The approximately month-long interval showcases not only continuing tensions between the two sides. It is also a signal that the agreement remains a fragile, hastily cobbled together exercise that could yet collapse in the three-year period to 2028 that it is meant to be in effect.
While some elements of the agreement will be respected, others are not legally binding and unlikely to come close to being realised. For instance, the EU pledge to buy some US$750 billion of US energy from 2025 to 2028 would require a huge increase in European purchases, and is most unlikely to materialise.
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