Opinion: The EU–US Trade Deal Puts Pressure on Europe’s Cooperative Economy

An opinion piece by Giuseppe Guerini, President of Cooperatives Europe, on the implications of the recent EU–US trade agreement for cooperatives and the European economy.

The recent trade agreement between the European Union and the United States marks a significant shift in global trade dynamics. While it brings some clarity after months of uncertainty and tension, it also highlights structural weaknesses within the European Union and presents new challenges for its economic fabric, including cooperatives.

 

The introduction of 15% tariffs on several goods, combined with recent currency pressure, will affect a wide range of producers. For cooperatives across agriculture, industry, manufacturing and other sectors, these developments pose a serious challenge, especially after years of navigating successive economic crises.

 

Absorbing this new shock will not be easy. Beyond immediate financial strain, it threatens the long-term health of Europe’s productive economy and may result in higher costs for consumers.

 

Beyond the immediate impact, the agreement points to a deeper issue: Europe’s limited capacity to act with strategic economic coherence. Fragmentation at EU level weakens its global position and limits its ability to respond swiftly and effectively to new trade realities.

 

Europe must act on two fronts: strengthening its internal market and forging new strategic alliances. This includes deepening ties with neighbouring countries, the Mediterranean region, the United Kingdom, and Canada, while advancing a more coherent framework for economic governance. That means rethinking monetary policy, interest rates, and trade priorities.

The European Union must also step up as a global actor, not through the logic of power politics, but by reinforcing its founding values: the rule of law, democratic principles, and its social market economy.

 

This is a call to build a more resilient and competitive Europe, through a model of cooperation, not confrontation.

 

The divisions among EU Member States have left the continent vulnerable to external pressure. This must be a turning point. A stronger, more united Europe is the only way to protect the interests of its citizens and businesses.

 

Cooperatives Europe supports this vision. We are committed not only to defending the single market, but also to helping build an ecosystem where cooperatives can compete, thrive, and lead innovation, contributing to a fairer, more sustainable economy.