US-EU trade deal is a political victory for the US - MEP Zile

RIGA - The trade agreement reached by US President Donald Trump and European Commission (EC) President Ursula von der Leyen is a political victory for the US, said European Parliament (EP) Vice-President and MEP Roberts Zile (National Alliance) in an interview on Latvian Television this morning.

He explained that this is also visible in the stock exchanges. "But there is nothing that can be done. Europe is where Europe is. Militarily, we are far behind (...)," he said.

The politician explained that the political agreement document has been adopted, but it is not yet legally binding and work is still ongoing on tariff issues. At the same time, he stressed that although some Member States have reservations, the EC President did not go to this negotiation without a mandate from Member States' politicians.

Asked whether there were any concrete benefits from the agreement, he stressed that an approximate course had been set. This is better than the uncertainty that would have arisen after August 1 in the absence of such an agreement, the politician said.

Asked whether the agreement meant that the West was becoming more united again, the politician said that the agreement was "not perfect news, but it is good news". He explained that such an agreement had been concluded with Japan, the UK and Indonesia. "In this case, it was extremely important to reach such an agreement with the European Union as well," he stressed.

Asked whether the EU had been too accommodating in these negotiations, Zile said that there was no ideal situation in politics.

The EU and the US should aim for lower barriers to trade, which would be beneficial for both sides, the MEP said.

The AFP news agency reports that the European Union on Monday vehemently defended its trade deal with President Donald Trump, with EU capitals and businesses sharply divided on an outcome some branded a "capitulation".

"I'm 100 percent sure that this deal is better than a trade war with the United States," top EU trade negotiator Maros Sefcovic told journalists.

European Commission President Ursula von der Leyen clinched the framework accord with Trump Sunday after dashing to Scotland as the August 1 deadline loomed for steep levies that threatened to cripple Europe's economy.

EU exports are now set to face across-the-board tariffs of 15 percent -- higher than customs duties before Trump returned to the White House, but much lower than his threatened 30 percent.

The 27-nation bloc also promised its companies would purchase energy worth $750 billion from the United States and make $600 billion in additional investments -- although it was not clear how binding those pledges would be.

"This is clearly the best deal we could get under very difficult circumstances," Sefcovic said.

Full details of the agreement -- and crucially which sectors could escape the 15-percent levy -- will be known in coming days, although the EU says it has avoided steeper tariffs on key exports including cars and medicines.

But the reaction from European capitals -- which gave von der Leyen the mandate to negotiate -- ranged from muted to outright hostile.

French Prime Minister Francois Bayrou said it was a "dark day" for Europe and said the accord was tantamount to "submission".

Speaking for Europe's biggest economy, German Chancellor Friedrich Merz gave a warmer welcome to a deal he said had avoided "needless escalation".

Industry groups in both countries made plain their disappointment however, with Germany's main auto sector body saying the 15-percent levy "burdens" carmakers while its VCI chemical trade association said the rates were "too high".

Hungary's Prime Minister Viktor Orban attacked the deal in blunt terms, saying "Trump ate Ursula von der Leyen for breakfast".

"It looks a bit like a capitulation," said Alberto Rizzi of the European Council on Foreign Relations (ECFR).

"The EU accepted a fairly unbalanced deal," he added, saying it delivered a "political victory for Trump".

Von der Leyen had faced intense pressure from EU states to strike a deal quickly with the bloc's biggest partner and protect a $1.9-trillion trading relationship.

Defending Brussels' approach, Sefcovic warned that a no-deal scenario -- meaning a 30-percent tariff and the prospect of further escalation -- would have risked up to five million jobs in Europe.

Throughout the months-long talks, Brussels prioritised stability and maintaining good relations with Washington, over escalation.

That line of thinking has support: Italian Prime Minister Giorgia Meloni, a Trump ally, said the deal had avoided "potentially devastating" consequences.