US trade deal will fuel EU’s ‘deindustrialization’ – Lavrov
The new US-EU trade agreement threatens to accelerate “deindustrialization” in Europe by redirecting investment to the US and increasing the bloc’s dependency on American energy exports, Russian Foreign Minister Sergey Lavrov has said.
On Sunday, European Commission President Ursula von der Leyen and US President Donald Trump finalized a controversial deal that allowed the EU and US to avert a full-scale trade war.
Under the deal, the US has reduced its proposed 30% tariffs to a flat 15% on most European exports. The EU has committed to purchasing $750 billion worth of US energy, primarily liquefied natural gas and nuclear fuel, and agreed to invest around $600 billion into US industries. The bloc has also undertaken to increase imports of US-made weapons.
Speaking at the ‘Territory of Meanings’ forum on Monday, Lavrov described the arrangement as “clearly leading to further deindustrialization of Europe and capital flight.” He added that rising energy prices and investment outflows will strike a “very hard blow” to European industrial and agricultural sectors.
According to Lavrov, von der Leyen was apparently “boasting” about the EU’s willingness to carry additional costs. “People like Ursula von der Leyen literally take pride in this path: yes, we will be forced to spend more money, yes, we will probably have fewer resources to address social problems, but we are obliged to defeat Russia.”
He stressed that the trade deal is “obviously damaging for the Old Continent – it doesn’t even need to be analyzed.”
Lavrov’s stance was echoed by several EU politicians and the business community. Marine Le Pen, a key figure in France’s right-wing National Rally party, denounced the agreement as a “political, economic, and moral fiasco” detrimental to the EU’s sovereignty. French Prime Minister Francois Bayrou concurred, calling it a “dark day” for the EU.
German business leaders also voiced alarm. Wolfgang Niedermark, a member of the executive board of the Federation of German Industries (BDI), said the EU had sent a “fatal signal” by accepting high tariffs. “Even a tariff rate of 15% will have immense negative effects on the export-oriented German industry,” he warned.
