Donald Trump has reached a new trade agreement with the European Union. The new arrangement increases the tariff rate from 10% to 15%. This has sparked some criticism in the EU, but European officials note the deal provides more predictability than none at all, enabling them to better plan for reforms and industrial policy.
Europe has also agreed to take greater responsibility for its own security, particularly the Euro-Atlantic flank. This shift allows the US to focus more on other strategic areas, such as the Indo-Pacific region.
Following the talks, Trump announced plans to impose sanctions on countries cooperating with Russia in oil and gas, with China, Turkey, and India among those potentially affected, especially over purchase and re-export of oil products derived from Russian crude. The EU intends to restrict imports of such goods.
China’s economy is currently facing stagnation, and Beijing is interested in importing cheap Russian energy to address internal challenges. India both consumes Russian crude and processes it for further export, including to the EU. Planned US sanctions could disrupt these flows and accelerate global economic fragmentation.
Meanwhile, the US continues to expand financial and military support for Ukraine, with new aid packages, spare parts, and weapons—some of which are being funded by the European Union.
Experts note Trump now has greater political leeway to pressure Russia, given Europe’s increased defense commitments and the influence of key advisers. At the same time, Moscow is seeking alternative export routes, including through cooperation with North Korea.
In conclusion, new US-EU agreements and potential sanctions on countries cooperating with Russia could significantly impact the balance of power in global politics and economics.
