A trade agreement between the EU and the US was reached on Sunday evening, leaving several unanswered questions about its implications. The agreement, seen as a victory for Donald Trump, involves the EU promising to invest billions in American energy and weapons in exchange for the US imposing a 15 percent tariff on imports from the EU.

European reactions to the agreement have been muted. Commission President Ursula von der Leyen stated that the agreement was “the best we could get,” suggesting a weakened negotiating position for the EU in future trade discussions. The EU also failed to create a unified front with other nations like Japan, and a strong response to the US tariffs never materialized. Foreign Minister Lars Løkke Rasmussen acknowledged that trade terms would not be as favorable as before, but emphasized the need for a balanced solution.

The agreement breaks with 80 years of free trade principles. By accepting Trump’s tariff logic, the EU is departing from established free trade practices. Companies will now face a 15 percent penalty tariff on numerous goods sold in the US. Nordea’s chief economist Helge Pedersen anticipates that both European producers and American consumers will bear the cost of these tariffs.

The full implications of the agreement remain unclear. Observers such as The New York Times and Italian head of state Giorgia Meloni have noted that the agreement is currently a “framework agreement,” leaving many details to be clarified. For now, the EU appears to have conceded ground to grant Trump a political win, the cost of which is still uncertain. The coming days will reveal the long-term impact of this agreement on trade and the geopolitical landscape.