The new US-EU trade accord has landed with a thud on both sides of the Atlantic, creating a rare consensus of disappointment among a wide range of stakeholders. From politicians to vintners to whiskey distillers, few are cheering the outcome, viewing it as a flawed compromise at best.
In Europe, the mood is sour. French and Spanish leaders have offered only reluctant, unenthusiastic support. The continent’s massive wine and spirits industry feels utterly abandoned, “hugely disappointed” by the lack of tariff exemptions. Italian businesses are bracing for a multi-billion euro hit, calling the deal “unfair.” Even the auto sector, the intended beneficiary, faces an uncertain wait for relief.
In the United States, the reaction is no better in some quarters. The Distilled Spirits Council slammed the deal for failing to secure tariff-free trade, predicting it would lead to significant US job losses and over $1 billion in economic damage. This shows that the pain of continued tariffs is a transatlantic issue.
The widespread lack of enthusiasm suggests the agreement is a fragile truce in a larger trade conflict, not a comprehensive peace treaty. It has resolved one major issue—the threat of escalating auto tariffs—but has done so in a way that creates new grievances and leaves old ones to fester, satisfying almost no one in the process.