German politicians slam von der Leyen over fresh EU‑US trade deal

Potential Impact on Germany’s Economy

German businesses and politicians are stunned by the customs agreement that Ursula von der Leyen, the EU executive chief, negotiated with the U.S. President. The deal is viewed as possibly harming the country’s economic interests.

Key Concerns Highlighted

• Possible distortion of trade tariff structures affecting German exporters.
• Uncertainty for investment flows due to changes in regulatory alignment.
• Risk of competitive disadvantages for German firms in the global market.

Stakeholder Reactions

Business leaders are calling for immediate review, while political parties emphasize the need for a protective response to safeguard national economic stability.

German Politicians Demand Commission President Resigns Over Unequal Trade Deal

On Tuesday, lawmakers from every major German party united in a rare denunciation of European Commission President Ursula von der Leyen. They called for her resignation after she consented to a trade agreement that imposes a 15% tariff on EU goods exported to the United States while granting American products duty‑free entry into European markets.

Context of the Agreement

The pact was brokered under intense pressure from German Chancellor Friedrich Merz, who sought to sidestep potential 30% punitive tariffs that could have devastated Germany’s export‑driven economy. Despite Merz’s initial public endorsement, the agreement sparked unprecedented cross‑party backlash, with legislators labeling it a “capitulation” and a “betrayal of Europe.”

Key Provisions of the Deal

• EU goods face a 15% tariff when sold to the United States.
• American goods enjoy duty‑free trade into European markets.
• US steel and aluminium imports into the EU remain subject to a 50% tariff.
• The EU pledged to purchase $750 billion in U.S. energy and invested $600 billion in European‑led projects in America.

Political Fallout in Germany

Merz’s stance shifted dramatically between Sunday and Monday, when he voiced concerns that the agreed tariffs now represented a “considerable burden” on the German economy. The fallout has led to an unprecedented wave of criticism across the entire spectrum of German politics, marking the first time in recent history that all major parties have jointly condemned the agreement.

EU Trade Accord Faces Backlash Over Germany’s Stakes

German Opposition Highlights Fundamental Flaws

At the Bundestag, Sandra Detzer from the Green Party condemned the EU agreement, arguing that it erodes core rules of a stable, rules‑based global trade system. She said the pact introduces more uncertainty than long‑term predictability.

Economic Toll on Germany

• Research from the Institute for Economic Research (IfW) estimates that the deal could shave roughly €6.5 billion off Germany’s GDP in its first year.
• Such a hit represents a significant contraction for a country heavily integrated with the EU’s market.

Industrial Alliance Speaks Out

Wolfgang Niedermark, representing the Federation of German Industries (BDI), warned that the compromise sends a “fatal signal” to economies across the Atlantic, underscoring inter‑dependent ties.

Key Concerns of the Deal

• Imposition of a 15% tariff is predicted to trigger adverse economic effects.
• Exclusion of steel exports from the agreement is described as an “additional low blow” by industry leaders.

These criticisms spotlight the far‑reaching implications of the EU deal, especially for Germany’s economic and industrial sectors.

‘Von der Leyen should resign for this worst deal ever’

European Political Reaction to the Controversial Deal

De Masi’s Strong Disapproval

German EU politician Fabio De Masi of the BSW party has expressed profound shock over the recently finalized agreement. In an interview with Euronews, he outlined his main concerns as follows:

• Economic Impact: “The deal will inflict vast economic damage upon Europe.”
• Betrayal: “It represents a betrayal of European values.”
• Leadership Accountability: “Mrs. von der Leyen should resign for bringing about what we consider the worst deal ever.”

De Masi’s comments highlight significant apprehension about the long‑term effects of the agreement on the continent’s economic stability and democratic integrity.

EU–US Trade Negotiations: A Skewed Settlement

Key Points of the Agreement

• US Duty‑Free Access: American products will enter Europe without tariffs.
• European Products Face a 15% Import Duty: EU exports to the United States will be taxed at a 15 % rate.
• Mandatory Investments: European companies are required to invest several hundred billion dollars directly into U.S. projects.
• Trump’s Trade Pressure: The administration has imposed new punitive tariffs, with businesses scrambling to supply fracking energy and defense equipment to meet the new demand.

Voices from Brussels

Fabio De Masi, an EU finance specialist, has highlighted the asymmetry: “While the United States enjoys duty‑free exports to the European Union, EU exporters must shoulder a 15 % tariff, and European firms must make direct investments totaling hundreds of billions of U.S. dollars.”

Svenja Hahn, a member of the Free Democratic Party, echoed the sentiment: “A 15 % tariff is preferable to the threatened 30 %, but the agreement is still largely a damage‑control measure rather than a genuine win for the EU.”

In a statement to Euronews, she added that the deal is “unbalanced, detrimental to the EU, devoid of substantial gains, and it weakens the foundation of rules‑based trade.”

Implications for European Commerce

The settlement, signed on Sunday, has been described by critics as a unilateral arrangement that favors the United States, with the European Union surrendering market access and investment freedom. The 15 % tariff may provide a limited buffer against the proposed 30 % rate, yet the overall balance remains tilted in favor of the U.S., threatening long‑term trade stability.

EU Representative Svenja Hahn Criticizes Leadership and Calls for Trade Reform

Interview with the European Parliament Member

Svenja Hahn, a Member of the European Parliament representing the Free Democratic Party (FDP) and a seasoned trade expert, shared her concerns about the current state of EU leadership:

• The Ursula von der Leyen has, according to Hahn, weakened the EU’s global standing and economic power by handling negotiations poorly.
• Hahn demands a decisive shift: reduction in bureaucratic hurdles, a robust internal market, and, most importantly, tangible progress on free‑trade agreements, especially with Mercosur.

Statement by German‑Polish MEP Tomasz Froelich

In a separate interview with Euronews, Tomasz Froelich, an MEP from the Alternative for Germany (AfD) coalition, offered a starkly different perspective on the perceived trade agreement:

• He declared the agreement “not a deal” but rather “a capitulation of the EU.”
• Froelich criticized the lack of meaningful pressure exerted on the United States as a key weakness in the negotiations.

AfD Representative Tomasz Froelich Criticizes EU’s Energy Policy

Background

• Affiliation: Froelich serves as the first deputy head of the Alternative for Germany (AfD) delegation in the European Parliament.
• Context: The statement follows rising concerns over the EU’s strategy for energy imports amid geopolitical tensions.

Statement by Tomasz Froelich

“This declaration of bankruptcy stands in stark contrast to the EU’s otherwise grandiloquent behaviour on the international stage,” Froelich remarked. “We are confronting challenges from all sides, yet the options available, especially regarding energy imports, are severely limited.”

Key Points Highlighted

• Opposition to Current Agreements: Froelich vehemently opposes what he describes as a humiliating and ruinous agreement on energy supplies.
• Proactive Measures: He pledged to act within the European Parliament to prevent any such agreement from being enacted.
• Strategic Focus: Emphasized the need for diversified and secure energy sources to avoid dependence on imports that could jeopardize national security.

Implications for EU Policy

The MEP’s remarks signal ongoing internal debate within the EU about the balance between cooperation and self-reliance in energy strategy. His stance may influence future legislative proposals and negotiation tactics regarding energy imports.

Governing parties lob criticism too

German Lawmakers Challenge U.S. Influence on European Policy

In a bold move, Johannes Winkel, a member of the CDU/CSU, voiced strong opposition to what he calls “the humiliation of Europe” by the United States. On X, he urged that this perceived undermining should spark deep self‑reflection among European leaders.

• “The focus on energy conservation, excessive bureaucracy, and ESG mandates is replacing true innovation, growth, and technology,” Winkel said. He called for the end of this politically driven economic self‑deprecation.

SPD’s Heated Response and Subsequent Retraction

Members from the coalition partner SPD also stepped forward with sharp criticism. Bremen’s mayor, Andreas Bovenschulte, joined the debate on X, accusing the EU’s leadership of being overly subservient to President Trump. He famously described the leader as “licking Trump’s boots” and praising him as a “tough—yet fair—deal‑maker.”

Bovenschulte later pulled back part of his remarks: “I retract the ‘honor’ statement. That was a bit harsh.”

Local Economic Concerns

In his own city of Bremen, Bovenschulte highlighted the jeopardy facing thousands of workers at the ArcelorMittal steel plant, stressing the urgency of addressing these domestic job losses amid broader political tensions.

Bavarian Leader Urges EU to Waive Additional Taxes After Customs Deal

In a candid statement on Monday, Bavarian Minister President Markus Söder (CSU) underscored the need for swift action to protect the region’s automotive sector.

Key Points from Söder’s Address

• Customs Deal Effectiveness: Söder acknowledged that the recent customs agreement “has prevented the worst,” yet highlighted that the industry is now facing tougher conditions.
• Zero Additional Taxes: He emphasized that any extra European levies—currently under consideration by the EU—must be avoided to safeguard economic stability.
• Need for Relief: The minister called for compensatory measures to offset tariffs imposed on German auto producers.
• Critique of EU’s Green Agenda: Söder warned that the current trajectory of the Green Deal was excessive and urged a shift towards an “Economic Deal” that benefits industry.

Statements from Economic Expert Markus Ferber

Longtime German MEP Markus Ferber (CSU) shared his perspective with the Bild newspaper:

• Tariff Elimination Assessment: Ferber noted that the coalition’s approach—eliminating all tariffs—did not bring a satisfactory outcome.
• Impact of a 15% Tariff: He warned that a fifteen‑percent levy would drastically inflate the cost of European goods in the US market, posing significant risks to the German economy.
• Comparative Cost Analysis: While a negotiation-free scenario might have been even more expensive, a constructive agreement should still be preferable.

Both Söder and Ferber’s comments underline a growing concern within Bavaria regarding Europe’s fiscal direction amid ongoing trade tensions.