In fact, this agreement has not yet taken effect because the European Parliament has not ratified it. Therefore, in essence, the new agreement is attributed to its temporary nature and is a new compromise between the US and the European Commission to move towards being conveniently ratified by the European Parliament. The amendments and supplements will help Parliament preserve its face and prestige before the European Commission when ratifying the trade agreement between the EU and the US.
That is just a temporary solution to help the EU avoid a trade war with the US and help President Donald Trump achieve some immediate victory to cover increasingly urgent domestic needs, proving that the trade-protective tariff war is still very useful for the United States.
Mr. Trump needs this result to ease the current situation in foreign affairs such as with Iran, China and Russia as well as to reduce public attention to domestic issues in the context of the upcoming midterm US Congressional elections.
The EU must compromise with the US to stop imposing 25% tariffs on EU cars and trucks from June 4. The EU was forced by the US to reduce tariffs from 50% to 15% on steel and aluminum products, but had to yield to the US regarding the application deadline from the end of this year, not immediately. In addition, the EU achieved many contents in the trade agreement, but had to yield to the US regarding the term of the trade agreement until the end of 2029 instead of until the beginning of 2028.
It can be seen that Mr. Trump needs immediate success while the EU needs to stabilize economic and trade relations with the US as well as need more time to build strength and position to help the EU no longer depend on economic and trade relations with the US.
The EU is forced to minimize risks and avoid further extreme scenarios in US policy towards the EU. In this matter, the agreement is not good but acceptable for both sides. That is better than not achieving anything.
