The Daily Europe Caves to Trump on Tariffs
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Jul 29, 2025 
Jeanna Smialek, the Brussels bureau chief for The New York Times, dives into the recent trade deal between the U.S. and the EU. She reveals why Europe conceded to President Trump’s demands, generating significant backlash. The discussion highlights the EU’s diminishing power in negotiations and the fear that drove their compliance. Smialek also explores the implications of these tariffs for European industries and the unsettling effects of this arrangement on future trade relations and broader geopolitical issues.
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EU's Humiliating Trade Capitulation
- The EU caved to President Trump in a trade deal widely seen as humiliating for Europe.
- European leaders express embarrassment and see the agreement as a political capitulation.
EU's Overestimated Negotiating Leverage
- EU expected more leverage due to their economic size but faced unexpected difficulties negotiating with Trump.
- They had to accept a worse deal than anticipated, showing Trump's tough negotiating approach.
Fear of Trade War Drives EU Deal
- Europe feared a spiraling tariff trade war that could severely harm its economy.
- The possibility of tariffs as high as 30% prompted EU to make serious concessions to avoid economic damage.