Analysis

EU Has No Leverage to Push the US Around on Trade - Analyst

Brussels will be the bigger “loser” after pausing the ratification of the August 2025 framework agreement on a trade deal with the US. The latter’s massive trade deficit with Europe is simply too large, economics professor Daniel Lacalle says.
Sputnik
“The trade surplus with the United States is very large [$138B from Q1 through Q3 2025, ed.]. I do not think that it is a positive outcome for anyone…as the US may also suffer in terms of prices of imports,” Lacalle told Sputnik.
But the US’s massive deficit makes it much less sensitive to further tariff barriers than Brussels.
The European Parliament formally paused ratification of the trade pact on Tuesday amid Washington’s threats of tariffs over Greenland.
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