The European Union's trade agreement with the Trump administration has sparked mixed reactions – some EU officials welcomed it as a relief, while others warned of economic setbacks. While many see the deal as a success in averting a potential trade crisis, critics argue it delivers a serious blow to the EU economy and remains dangerously vague.

The deal in focus

The framework deal, announced on Sunday between the two economies accounting for almost a third of global trade, will see the U.S. impose a 15 percent import tariff on most EU goods beginning next month, but offers limited protection for critical industries like cars and pharmaceuticals. That is half the rate Washington had threatened, though much more than Europeans hoped for.

German Chancellor Friedrich Merz, who heads the EU's largest economy, called the deal a success in averting a trade conflict that would have severely impacted Germany's export-driven economy. "This agreement has succeeded in avoiding a trade conflict that would have hit the export-oriented German economy hard," Merz stated.

EU Trade Commissioner Maros Sefcovic echoed this sentiment, noting that the alternative of 30 percent tariffs would have been far worse. "This is clearly the best deal we could get under very difficult circumstances," Sefcovic said.

Mixed reactions across the EU

While some EU countries expressed relief at the deal, others voiced significant dissatisfaction.

France, the EU's second-largest economy, condemned the agreement as a "submission." Prime Minister Francois Bayrou called it a "dark day" for Europe, posting on social media that an alliance of free nations should not simply resign itself to submission.

Portugal also voiced its discontent, with the Ministry of Economy and Territorial Cohesion describing the deal as a limited improvement but one that falls short of genuine free trade. "Nothing replaces the freedom of trade," the ministry stated, reaffirming Portugal's commitment to advocating for the gradual elimination of tariffs and trade barriers.

Rafael Alves Rocha, director-general of the Confederation of Portuguese Business (CIP), called the deal unbalanced and unfavorable to European producers. He likened the outcome to "feeling happy with a mere storm when a hurricane was expected," warning that the agreed tariff levels marked a significant increase from the current average of around 2.5 percent, which could harm exporters.

According to the CIP, the Portuguese government has responded to potential negative consequences with financial support measures for domestic businesses.

Hungarian Prime Minister Viktor Orban was even more critical, comparing the deal unfavorably to the one negotiated by the UK. "Donald Trump did not reach an agreement with Ursula von der Leyen, but rather Donald Trump ate Ursula von der Leyen for breakfast," Orban said during a Facebook livestream hosted by his party's spokesperson.

Details be finalized

Although some EU countries have voiced discontent, the framework agreement is unlikely to be derailed, as trade negotiations fall under the European Commission's remit. However, significant work remains to be done, as many details of the deal are still to be finalized.

EU officials have promised to clarify the specifics in a joint statement to be released by August 1. Further negotiations will be held in the coming weeks to finalize a comprehensive agreement.

Germany, too, acknowledged that more work is needed, especially concerning the steel sector.

The deal also includes significant investment pledges. President Trump noted that the agreement, which surpasses the $600 billion deal signed with Japan last week, would strengthen transatlantic ties and address what he called the "unfair treatment" of U.S. exporters.

While the EU has pledged $750 billion in strategic purchases over the next three years – covering sectors like oil, liquefied natural gas (LNG) and nuclear fuel – questions remain about how the EU will meet these commitments. U.S. LNG production is set to almost double over the next four years, but it may still fall short of meeting Europe's demand, and oil production is expected to be lower than previously forecast.

(With input from agencies)