Interview: Swedish expert says U.S.-EU tariff deal adds burden on Europe

The EU was forced into a "compromise" it neither desired nor truly benefited from, said a Swedish expert.

by Xinhua writer Ding Yinghua

STOCKHOLM, July 29 (Xinhua) -- The new trade deal between the United States and the European Union (EU) may ease tensions on paper, but in practice it adds financial pressure and strategic strain on Europe, said Hussein Askary, vice chairman of the Belt and Road Institute in Sweden.

U.S. President Donald Trump and European Commission President Ursula von der Leyen claimed Sunday that they had reached a trade deal under which the United States would impose a baseline tariff of 15 percent on EU goods.

In an interview with Xinhua following the announcement, Askary said that the EU was forced into a "compromise" it neither desired nor truly benefited from.

"Fifteen percent is still high for European companies that are used to a freer trade environment," he said. "This is a compromise people are willing to accept, but it does not mean they like it."

Under the new deal, the EU has also pledged to purchase 750 billion U.S. dollars' worth of American energy and commit an additional 600 billion dollars in investments in the United States.

Askary argued that such terms shift Europe's priorities in a negative direction.

"We are sacrificing other aspects of our economic agenda -- infrastructure, healthcare and education -- in order to afford expensive American liquefied gas and other goods," he said.

He noted that economies like Sweden and Germany, heavily reliant on exports, are particularly sensitive to policy instability, such as the tariffs. "We need the free flow of goods, services and capital. That is essential for long-term planning, investment and continuity," he said.

The United States' unpredictable trade strategy has disrupted transatlantic business, he added.■