Europe Caves to Trump on Tariffs

In this episode of The Daily, host Michael Barbaro and Brussels Bureau Chief Jeanna Smialek discuss the recently reached trade deal between the United States and the European Union. The deal is viewed unfavorably by European leaders, who feel they had to capitulate to President Trump's demands due to fears of escalating tariffs and potential repercussions on geopolitical issues like defense and support for Ukraine. The agreement includes a 15% tariff on 70% of European goods entering the U.S., while American cars will face zero tariffs in Europe, a move seen as benefiting the U.S. more than the EU. While the deal aims to rebalance trade and encourage American manufacturing, it may also lead to higher costs for American consumers. Despite the chaotic nature of Trump's trade strategy, this deal, along with others, suggests a significant shift in the global trading system, potentially favoring the U.S.