EU-U.S. trade deal: Stability? Or did Trump 'eat EU chief for breakfast'?

The trade deal clinched by the United States and the EU marked a "somber day" for Europe, said French Prime Minister Francois Bayrou. His country's minister for Europe Benjamin Haddad said it provided temporary stability but is "unbalanced."

Hardly noises of celebration for EU chief Ursula von der Leyen to chew on this morning after reaching a deal on Sunday in talks with U.S. President Donald Trump who had just played a round of golf on his second full day in Scotland.

Hungarian Prime Minister Viktor Orban was a little more colorful with his words, saying the agreement is "worse" than the deal the U.S. agreed with the UK. That deal puts tariffs on most UK exports to the U.S. at 10 percent.

"Donald Trump did not reach an agreement with Ursula von der Leyen, but rather Donald Trump ate Ursula von der Leyen for breakfast," Orban said during a Facebook livestream hosted by his party's spokesperson.

Who got what from the deal?

The agreement sets the U.S. tariffs on goods from Europe at 15 percent across the board, including for Europe's crucial automobile sector, semiconductors and pharmaceuticals – a critical export for Ireland, which the bloc has sought to protect.

As part of the deal, Trump said the 27-nation EU bloc had agreed to purchase "$750 billion worth of energy" from the U.S., as well as make $600 billion in additional investments. The EU had been facing a 30 percent levy on its exports to the U.S. from 1 August.

"It's a good deal for everybody. This is probably the biggest deal ever reached in any capacity," said Trump. Von der Leyen called it a "huge deal" following "tough negotiations" and "is the best we could get."

It's safe to say there is a mixed reaction in Germany. The 15 percent tariff the U.S. will apply to exports of cars from the EU as part of the deal.

"It will cost German automotive companies billions annually and burdens them," said Hildegard Mueller, president of Germany's main auto industry group, the VDA.

The new rate is lower than the 25 percent levy Trump slapped on carmakers in April, but significantly higher than the usual 2.5 percent duty applied before. "Important now is how the agreement looks in concrete terms and how reliable it is," Mueller added.

Germany's Chancellor Friedrich Merz, however, hailed the deal, saying it avoided "needless escalation in transatlantic trade relations."

'Wake up Europe'

French minister Haddad did welcome some aspects of the agreement, including exemptions on industries key to the French economy, and that the agreement left in place European regulations on sectors like digital technology and healthcare. But he had a warning.

Haddad said: "The U.S. has chosen economic coercion and a complete disregard for the rules of the World Trade Organization. We must quickly draw the necessary conclusions or risk being wiped out. If the Europeans don't wake up, the difficulties faced by others will seem all too relative compared to our own decline."

The EU currently faces 50 percent tariffs on its steel exports to the U.S., but Von der Leyen said a compromise on the metal had been reached with Trump.

What happens next?

The deal needs to be approved by EU member states, whose ambassadors will meet on Monday for a debrief from the European Commission. There are still technical talks to come, since the agreement needs to be fully fleshed out.

Von der Leyen described the deal as a "framework" agreement. In particular, she said there has yet to be a final decision on alcohol, critical since France and The Netherlands have been pushing for carve-outs for wine and beer respectively.

"This is something which has to be sorted out in the next days," she said.

Von der Leyen will hope talks are a little smoother with her European colleagues than her time sparring with an increasingly confident American President next to a windswept and soggy golf course in Scotland.