The European Union heads into a potentially pivotal week of trade negotiations with U.S. President Donald Trump amid growing internal divisions. According to reports in the Handelsblatt, skepticism is rising among several member states regarding the potential terms of a deal and the risk of an unequal agreement.
Concerns are surfacing that European Commission President Ursula von der Leyen may be conceding too much to secure a resolution that avoids a further escalation of tariffs, specifically a potential doubling of auto tariffs. “What is emerging is a bad deal for Europe” one source told the Handelsblatt. “Is it really worth conceding so much to the Americans just to prevent Trump from doubling auto tariffs to 50 percent?
Despite the reservations, Germany and Italy are reportedly pushing for a swift resolution to the dispute.
A briefing held Friday in Brussels, delivered by Commission Cabinet Chef Björn Seibert to the 27 Permanent Representatives of EU governments, presented a sobering picture. According to sources present, the United States has offered few concessions and Trump has threatened to impose new tariffs on European agricultural products.
Critics warn that President von der Leyen faces significant political risk if she pushes forward with a deal under these conditions. One EU diplomat speculated that an overly concessive agreement could be damaging, making it politically difficult for her to distance herself from the outcome and potentially impacting her broader political standing. The week ahead is expected to be critical in determining the trajectory of EU-U.S. trade relations.