Brussels. France denounced the trade agreement between the European Union (EU) and the United States as"subservience," while other EU states supported it, although they called it unequal but said it avoids a damaging dispute with Washington. In that sense, the European Commission positioned itself in favor of the pact, emphasizing that it was better than a trade war.

The products exported by the EU did not avoid the tariff burden, so widespread impacts are expected if special treatment is not agreed upon, which has so far been announced for very few sectors, such as the aeronautical sector.

“It is a dark day when an alliance of free peoples, gathered to affirm their common values and defend their common interests, resigns itself to submission,” wrote Prime Minister François Bayrou.

French President Emmanuel Macron made no public comment.

Although the mood among other European governments was decidedly gloomy, most agreed that failure to reach an agreement would have been disastrous.

German Chancellor Friedrich Merz said he was not satisfied with the outcome of the trade negotiations with the United States, but that “nothing more could be achieved,” adding that the German economy would suffer “significant” damage.

"I am fully aware that the tariffs that remain in place—particularly 15 percent versus 0 percent for EU imports—are a serious burden on the export-oriented German economy," Merz said at a press conference in Berlin.

Spanish Prime Minister Pedro Sánchez stated that he appreciated the European Commission's constructive efforts to reach the agreement and supported it, but that he did so"without any enthusiasm."

For his part, the EU's chief negotiator, European Trade Commissioner Maros Sefcovic, said he was"100 percent sure that this agreement is better than a trade war with the United States."

He also reported that the EU and the United States will develop a metallurgical alliance to mitigate the impact of subsidized Chinese production on global markets.

Sectors that already anticipate impacts

Cars, wines, and luxury goods are some of the key sectors of the European economy affected by the 15 percent tariffs agreed on Sunday by US President Donald Trump and European Commission President Ursula von der Leyen.

Although lower than the 30 percent Trump threatened, this tax will hamper the export of European products to the United States, which have already become more expensive since the beginning of the year due to the appreciation of the euro against the dollar.

Thus, European car manufacturers, already facing stiff Asian competition and a costly transition to electric vehicles, will now have to face another dose of reality.

This is because the agreed-upon 15 percent tariff (down from 27.5 percent) will still cost automakers billions and leaves many uncertainties. For its part, the EU agreed to reduce its tariffs on car imports to 2.5 percent, according to an EU official.

The French Federation of Wine and Spirits Exporters (FEVS) said the agreement is expected to confirm duty-free trade in spirits.

US tariffs on EU spirits were provisionally set at 10 percent in April. According to a study by the Wine & Spirits Wholesalers Association, a 15 percent increase in tariffs on wines would mean the loss of 17,000 jobs and more than $2.5 billion in business in the United States.

Pharmaceuticals are the most exported goods from Europe to the United States, worth around $140 billion in 2024 (22.5 percent of total exports), according to Eurostat. Until now, they were exempt from customs duties, and Sunday's agreement does not grant them any special treatment.

The luxury sector will not have any exemptions, and will therefore be subject to a 15 percent tariff.

French giant LVMH, owner of Louis Vuitton and Dior, estimated on Thursday that this percentage"would be a good result" that could be offset by a price increase or "production optimization."

But other players aren't considering this option. The president of the Kering group, owner of Gucci and Balenciaga, stated in May that"it wouldn't make sense to have Italian Gucci bags made in Texas."

French and Italian cosmetics brands also have a strong market in the United States. L'Oréal, for example, will generate 27 percent of its global sales in 2024 in North America. Its CEO has raised the possibility of relocating part of its production.