New Trade Deal Sparks Internal EU Divisions Over US Concessions

The framework trade deal with the United States is exposing and exacerbating internal divisions within the European Union, pitting member states and industries against one another. The agreement’s structure, which prioritizes the auto industry while offering little to others, has created a clear rift between beneficiaries and those left behind.
On one side are Germany and its powerful automotive sector, which are desperate for the EU to quickly introduce the legislation required to unlock US tariff relief. The economic health of Europe’s largest economy is heavily tied to this outcome, creating a powerful incentive to comply with US demands.
On the other side are countries like France and Italy, whose key export industries feel abandoned. France’s wine sector faces continued tariffs with no relief in sight, leading to accusations that their interests were traded away. Italy’s small and medium-sized businesses fear devastating losses from a deal they see as disproportionately harmful to their diverse export economy.
These differing economic interests are fueling political tensions. The sharp rebuke from French Prime Minister François Bayrou, who spoke of “submission,” contrasts with the more pragmatic, if unenthusiastic, acceptance from others. As Brussels prepares to legislate the deal, it must navigate these deep divisions, which threaten to complicate and prolong a process the US and the German auto industry want to see concluded swiftly.