Economist and trade expert Gabriel Felbermayr urges the United States and Europe to strike a new tariff agreement.
He says, “We now have a better position against Donald Trump and the United States”. According to the chief of the Austrian Institute for Economic Research, he believes Europe is likely to secure a more favourable deal.
Felbermayr rejects the earlier July 2025 proposal, arguing that ratifying it now would make the European Parliament complicit in Trump’s trade policy. “We should not look back on this deal regretfully, it must be renegotiated”. The original summer agreement would have guaranteed Europe a 15 percent tariff and zero tariff for the United States; the European Parliament had postponed its ratification.
He welcomed the U.S. Supreme Court’s recent ruling that declared part of Trump’s tariffs unlawful, calling it “excellent news for the world”. The decision shows that the United States’ rule‑of‑law institutions are more resilient than many had thought, and he hopes this stability extends to other institutions, particularly the Federal Reserve. The economist predicts a strengthening of the euro.
Regarding Germany’s economic stagnation, Felbermayr cautioned that “the exit from the valley of tears will not be achieved through exports”. Instead, he stresses the need to strengthen the European Union decisively.
