When U.S. President Donald Trump and European Commission President Ursula von der Leyen shook hands at Trump’s Scottish golf resort late last month, they weren’t just announcing a new trade deal — they were formalizing Europe’s economic and ideological surrender.
By agreeing to 15% tariffs on most exports to the United States, the European Union has capitulated to Trump’s zero-sum worldview. In doing so, it has abandoned the principles of multilateralism that have long guided global trade.
The economic consequences are immediate and severe. European exporters now face tariffs nearly 10 times higher than the previous trade-weighted average of 1.6%. Volkswagen alone has reported a €1.3 billion ($1.5 billion) hit due to higher U.S. tariffs.
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