The European Trade Union Confederation (ETUC) is warning that the European Commission must introduce measures to safeguard jobs and incomes following its trade deal with US President Donald Trump.
The 15 % US tariff deal is less severe than the threatened 30 %, but it still represents a major burden on key sectors. The result is likely to be significant job losses and slower hiring in manufacturing and export-dependent industries.
The deal will also hit jobs and wages by depressing the European economy. Based on the estimates from the ECB's June forecasts, a 15% tariff will cost the euro area economy 1.5% of missed growth between 2025 and 2027 – equivalent to €240 billion.
Lost investment
Much-needed money for investment will be diverted to the US. Under this deal the EU has agreed to invest $600 billion in the US, with an additional $750 billion allocated for energy and military equipment – money which should be invested to create quality new jobs in Europe.
Although the threat of a headline tariff of 30% has been defused, the 15% rate will be damaging and many of the most significant elements, including sector-specific exemptions and so called non-tariff barriers are still under negotiation. Without strong protections locked in, there is a risk the US will push for further concessions, placing additional pressure on European jobs, standards, and public investment.
There is no escaping the fact that this is an asymmetrical deal in favour of US. It fails to take into account that the US exports billions in financial, tech, and professional services to the EU each year, yet this framework makes no attempt to rebalance that relationship or secure protections for Europe’s own service sector workers.
ETUC General Secretary Esther Lynch said:
“The EU institutions cannot make working people pay for their failure to stand-up to Donald Trump. This deal puts a responsibility on the Commission to introduce flanking measures that protect workers and their industries from the tariffs that it has signed up to.
“It is not sufficient to say this is the best we could do. Europe must develop a credible autonomous industrial strategy which secures and strengthens jobs and production in Europe.
“It is important now for the EU to have a plan to finalise the deal without making further concessions. These threats are not going away. The Commission needs to ensure Europe has the capacity to protect working people from the chaos being created by Trump and be willing to arrive to the table with some stronger cards."
ETUC Deputy General Secretary Claes-Mikael Ståhl added:
“EU leaders must carefully assess the long-term impact of this agreement. Strategic sectors must be protected, and any trade partnership must be based on fairness, reciprocity, and a strong commitment to quality job creation on both sides of the Atlantic.
“Europe must invest in quality jobs here at home. We need a long-term industrial strategy focused on green transition and job creation – not a one-sided deal that channels EU funds and employment opportunities abroad.
“Going forward, Europe must diversify its trade relations with agreements based on democracy, human rights and international law. That means ensuring they contain strong labour and environment provisions backed-up by real enforcement mechanisms. These are not only part of European values, but are also what upholds European competitiveness and our social model.”
