A new transatlantic trade deal has triggered political uproar after European Commission President Ursula von der Leyen confirmed a flat 15% tariff on EU exports to the United States. While framed as a strategic necessity to avoid harsher sanctions from Donald Trump, critics warn the agreement could severely impact European industry — with Monaco’s high-value exports among the likely casualties.
A sweeping new trade agreement between the European Union and the United States has been signed, imposing a standardised 15% tariff on most EU exports to the American market. The deal, struck by European Commission President Ursula von der Leyen and US presidential candidate Donald Trump, has already sparked widespread backlash from political leaders and trade experts across Europe.
According to von der Leyen, the agreement was necessary to prevent Trump from introducing a punishing 30% tariff, which she described as a serious threat to transatlantic commerce. “Today’s deal creates certainty in uncertain times,” she said. “We have stabilised on a single 15% tariff rate across most sectors, including cars, semiconductors and pharmaceuticals. This 15% is a clear ceiling. No stacking. All-inclusive. So it gives much-needed clarity for our citizens and businesses.”
The agreement also includes zero-for-zero tariffs on selected sectors such as aircraft components, agricultural goods and critical raw materials, while steel and aluminium will fall under a new quota-based system. Von der Leyen described the outcome as a “building block reaffirming the transatlantic partnership” and praised Trump’s “personal commitment” to the deal, calling him “a tough negotiator, but also a dealmaker”.
Political backlash across Europe
Despite the Commission’s optimistic tone, reactions from European lawmakers have been scathing. MEPs from multiple parties labelled the agreement “a submission” and “a breach of WTO rules”. Many warned that the deal hands disproportionate advantages to the US while failing to secure meaningful concessions for Europe.
French President Emmanuel Macron reportedly described the agreement as “a dark day for European industry”, while Spain’s Pedro Sánchez criticised its impact on competitiveness and inflation. Even within von der Leyen’s own European People’s Party, voices of discontent have emerged, with several members calling for an urgent parliamentary review.
EU Trade Commissioner Maroš Šefčovič attempted to calm the backlash, calling the deal “the best outcome under very difficult circumstances” and defending it as a necessary compromise given the geopolitical instability and looming threat of protectionist escalation.
What it means for Monaco
As Monaco is bound to the EU’s common trade policy via its customs union with France, the Principality will be directly affected by the new tariff regime. Sectors reliant on exports to the United States — particularly those dealing in high-end goods such as luxury yachts, jewellery and bespoke manufacturing — now face a 15% cost increase when accessing the US market.
With no exemptions for luxury sectors, Monaco-based exporters may experience tighter margins, reduced competitiveness, and slower growth in transatlantic trade. The agreement could also complicate supply chains, particularly in areas tied to pharmaceuticals and advanced manufacturing.
While von der Leyen pointed to new energy cooperation and the opening of strategic sectors as future opportunities, Monaco’s niche economy — heavily reliant on trade predictability and low-friction international commerce — may see more pressure than promise from this latest shift in global trade dynamics.
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Photo source: European Commission
