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Whatever the economic merits and demerits of this deal, politically it's a disaster, as this article indicates. There wasn't even an attempt to sell this to the public. But as there are no elections until 2028, I expect major changes in strategy in a year or so, otherwise the center-right parties in charge now will be wiped out in favor of the anti-American factions of the far right and far left. My suspicion is that there's a quid-pro-quo regarding Ukraine. Economically, the EU is in a strong position, but militarily, a mercurial US has the EU over the barrel due to the Ukraine war. I predict that Europe's notoriously hard-nosed negotiators (Brexit) will ramp up the pressure as the midterms get closer and if the situation in Ukraine improves. |
European security depends on winning the Ukraine war.
Anders Puck Nielsen explains it here: https://www.youtube.com/watch?v=RxapAZRYJ6I
This is why it makes sense to eat the tariffs as long as it keeps the weapons flowing from the US and why EU doesn't mind much paying for them.