Europe's Painful Trade Compromise with Trump's America

Europe has reluctantly agreed to a trade deal with the United States, settling for a 15% tariff after months of challenging negotiations. This compromise starkly reflects the EU's struggle to assert its economic clout against a formidable U.S. stance under President Donald Trump.

The agreement is primarily seen as a reality check for the EU, which has long touted itself as an export powerhouse. Despite preventing a recession and averting higher tariffs, it confirms the EU's limitations, as it bows to a heavy-handed U.S. approach which demands substantial investment in the U.S.

This deal underscores the pressing need for Europe to reassess its trade strategies and diversify its economic partnerships. The EU faces an 'existential threat,' necessitating reforms to reduce dependency on the U.S. and open new channels with other global industrial powers.

(With inputs from agencies.)