The European Union still expects problems in trade relations with the United States, even after both sides agreed to a new trade deal. This deal limits most tariffs to 15%, replacing earlier higher rates. Although this agreement helped reduce tension, the risk of an EU US trade war still exists, as full implementation of the new agreement depends on upcoming decisions and unresolved sectors.
Rising Concerns Over EU Reaction to Trump Tariffs
This trade deal was meant to ease pressure, especially after the EU reaction to Trump tariffs in past years. Leaders in France, Germany, and other member states strongly criticized the US actions, calling them unfair and damaging to transatlantic trade. Even though the new deal looks like a positive step, several EU leaders believe it brings more challenges than solutions. Businesses in countries like Germany say the changes could make things more difficult, not easier.

As part of the agreement, the EU paused its reciprocal tariffs on around €93 billion worth of US products. This pause will last for six months, giving time for more talks. Still, many companies are unsure if anything will improve. Surveys show that nearly 60% of German firms think the deal will bring more red tape and higher costs. Early surveys suggest that while a few firms see potential benefits, most expect increased red tape and limited positive impact.
Reciprocal Tariffs and Unfinished Trade Discussions
US EU trade negotiations are still happening behind the scenes. Officials need to agree on more details, especially in important sectors like car manufacturing. Right now, car and auto parts tariffs remain unchanged, as both sides wait for the US to issue executive orders that align with the 15% agreement. Europe wants the US to make sure these tariffs are adjusted soon.

At the same time, business confidence in the EU is dropping. Many experts believe this is linked to the recent deal. Investors worry that the EU may have given up too much just to avoid the EU US trade war. If both sides fail to settle the remaining issues, more trade problems could follow.
While the EU US trade war has slowed down for now, big challenges remain. The EU reaction to Trump tariffs, the delay in removing reciprocal tariffs, and the uncertain direction of ongoing trade talks show that both sides still have a long way to go.