John O'Brien: EU capitulation to US in trade deal shows weakness of the bloc

The agreement comes with a long-term cost of a loss of prestige and influence for the EU and a missed opportunity to take a greater role in global leadership

European Commission President Ursula von der Leyen and US President Donald Trump shake hands after the EU-US trade deal is agreed. The EU commission, and Ursula von der Leyen in particular, capitulated to US demands, making significant concessions getting nothing in return. Photo: AP/Jacquelyn Martin

The EU has agreed a trade deal with the US that forces us to trade on worse terms than before. 

Increased tariffs on exports will make European products less competitive in the US market with a corresponding drop in sales, profits and jobs. This is expected to reduce GDP by 0.5% over the medium term. Financial markets reacted by selling the euro, signalling not only that it is a bad for economic growth but worse than expected.