An Unpopular Peace: Why the EU’s Trade Truce with the US Feels Like a Defeat

The European Union has secured a truce in its trade dispute with the United States, but for many in Europe, this unpopular peace feels more like a defeat. The terms of the agreement, which force the EU to make unilateral concessions before receiving reciprocal benefits, have left a bitter taste and undermined morale.
The feeling of defeat is rooted in the deal’s power dynamics. The US successfully used the threat of high tariffs to dictate the terms and timeline, a tactic that has been described as economic coercion. The resulting agreement, with its “act first” conditionality, is seen as a formal acknowledgment of the EU’s weaker negotiating position.
This sentiment is amplified by the deal’s sacrifices. To achieve peace on the automotive front, the interests of other major European industries, particularly wine and spirits, were cast aside. This has created a sense that the truce was bought at the expense of certain member states and sectors, making it a divisive and unpopular outcome.
While avoiding a full-blown trade war is a tangible achievement, the political cost has been high. The lack of enthusiasm from leaders in France and Spain, coupled with outright anger from industry groups, shows that this is not a peace that will be celebrated. Instead, it is being treated as a difficult, perhaps necessary, but ultimately disheartening compromise.