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The US-EU trade agreement is a painful compromise

This is how German business described it

Aug 21, 2026 15:27 47

The US-EU trade agreement is a painful compromise - 1

German industry circles have criticized the trade agreement between Brussels and Washington, calling it a painful compromise that fails to resolve key tariff issues.

“The Turnberry deal has only brought relative stability to industry. This agreement has always been a painful compromise“, said Wolfgang Niedermark, a member of the board of the German Industry Association (BDI), according to the DPA news agency.

European Commission (EC) President Ursula von der Leyen and US President Donald Trump reached an agreement on July 27, 2025 in Turnberry after months of tariff disputes. However, discussions on the details continued for several more weeks, until a joint statement on the bilateral trade agreement was signed on August 21, 2025. Since then, the maximum tariff on most European imports could not exceed 15% of the value of the goods. Brussels has also made concessions, for example by removing EU tariffs on US industrial goods. However, since the end of July, as an EC spokesperson told DPA, the fixed tariff rate for EU imports to the US has been 10% due to other legal grounds.

The fact that the US "in principle" respects the 15% tariff limit, Niedermark added, should be seen positively. On the other hand, there is still no decision on the steel and aluminium tariffs, which in some places reach 50%, or on the 25% import rates on certain trucks. "As for the tariffs on steel and aluminum products, after a temporary improvement in the situation, the threat of an extension of the US restrictive measures has resurfaced," he said.

Discontent is also being expressed in the German automotive industry. "The current 15% US tariffs on passenger cars and their parts continue to pose a significant challenge for the German automotive industry," said a representative of the German Automotive Industry Association. He also noted that "the very high additional US tariffs on European commercial vehicles and their components have become a significant burden for the companies affected."

The German Chamber of Industry and Commerce (DIHK) also has mixed feelings about the agreement between Washington and Brussels. "The customs deal marks a turning point for European trade policy," said DIHK Director General Helena Melnikova. According to her, the agreement has prevented the worst, "but it has not created trust." To preserve sovereignty, it is necessary to reduce strategic dependence - especially in the digital sphere - and diversify trade partnerships, she believes. "This includes the rapid ratification of agreements with India, Indonesia and Australia, as well as the consistent expansion of other trade ties in Asia," Melnikova concluded.