Economy

Von der Leyen Defends ‘Bad’ Trade Deal With Trump

Published

1 year ago

September 10, 2025

Von der Leyen defends her US trade deal amid backlash from EU lawmakers who see the pact as a sign of European weakness under pressure from Trump

Von der Leyen trade deal controversy is expected to take center stage today as the European Commission President addresses a skeptical European Parliament.

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Ursula von der Leyen faces mounting backlash from lawmakers who say the US-EU trade pact she brokered with former President Donald Trump is not only unbalanced — but a humiliation for the bloc.

Set to defend the accord during her annual State of the Union speech, von der Leyen enters the chamber at a time when more than half of Europeans view the deal negatively, according to a Cluster17 poll across five nations.

The trade pact, agreed in July, cements 15% tariffs on most EU exports to the US, with only limited exemptions.

In exchange, the EU agreed to buy massive quantities of American energy, drop some tariffs, and open up agricultural markets — concessions many see as one-sided.

“Everyone agrees it’s a bad deal that reflects Europe’s weakness,” said Valerie Hayer, leader of Parliament’s centrist bloc Renew.

Even Socialist leader Iratxe Garcia Perez said, “To argue that having a bad deal is better than no deal is just totally unacceptable.”

While some member states like France and Germany supported negotiations, many MEPs — across political groups — feel the bloc caved in due to its continued security dependence on the US.

Von der Leyen trade deal is now tied to a legislative proposal lowering EU tariffs — legislation Parliament must vote on soon. But her allies are divided.

Renew has not committed support
Socialists threaten to vote against
EPP (her own group) will back it — begrudgingly

“Obviously, 15-percent export tariffs to the US doesn’t make us happy,” said EPP chair Manfred Weber, adding that with a US president “who loves tariffs,” the EU got “the best we can get.”

The hard-right ECR group, including Italy’s ruling party, echoed that view, seeing the deal as a pragmatic, if painful, compromise.

Critics say the real test of the von der Leyen trade deal will be Trump’s future behavior.

Already, the former president has threatened Europe’s tech sector, criticizing EU antitrust actions — including the recent fine against Google.

“If he does not uphold the deal, we will have to be very tough,” an EU official said anonymously.

This statement has done little to reassure a Parliament wary of repeating past mistakes with Washington.

While trade dominates headlines, von der Leyen will also use today’s address to emphasize:

Support for Ukraine and a future “reassurance force”
A 19th EU sanctions package targeting Russian oil revenue
The need for competitiveness reforms within the single market

But she faces a fraught reception on foreign policy — especially over Gaza. Internal divisions have stalled EU action, with Commissioner Teresa Ribera calling the war a “genocide” and openly criticizing the bloc’s inaction.

Ultimately, the von der Leyen trade deal could define her second term — not as a triumph of diplomacy, but as a reluctant compromise with a volatile American partner.

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Whether Parliament swallows this “bitter pill” will shape not just EU trade, but the political future of its Commission President.

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Economy

NRS Assures Taxpayers VAT Remains at 7.5% Amid Tax Reform Concerns

Published

21 hours ago

October 27, 2026

Peculiar Adirika

NRS VAT rate remains 7.5%, the agency says, while addressing concerns over bank deductions, loans and the implementation of Nigeria’s tax reforms

The Nigeria Revenue Service (NRS) has assured taxpayers that Nigeria’s standard Value Added Tax (VAT) rate remains 7.5 per cent, while addressing concerns over the implementation of the country’s new tax reforms.

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The assurance was given by the Tax Administrator responsible for Kano, Jigawa and Katsina states, Samaila Abdullahi, during an NRS stakeholders’ engagement and tax reform sensitisation programme in Kano.

Abdullahi said concerns raised by individuals, traders, business owners and other stakeholders about the new tax laws were understandable, particularly questions relating to bank transactions, loans, family transfers, business income and the potential impact on small businesses.

He urged taxpayers to understand the reforms through the provisions of the law rather than rely on assumptions or misinformation.

According to him, the tax laws do not automatically authorise deductions from personal bank accounts.

He stressed that tax collection and recovery must follow the applicable legal provisions and procedures.

Abdullahi also clarified that money received as a loan should not automatically be classified as business income or profit, explaining that proper documentation is essential to establish the nature of a transaction.

“For instance, when a trader receives a loan of N500,000, the amount should not automatically be treated as N500,000 in sales or profit, provided the transaction is properly documented,” he said.

The NRS official’s comments were aimed at addressing public concerns about how the new tax framework would affect personal finances and business transactions.

He emphasised the importance of distinguishing between taxable business receipts and other funds, such as documented loans, when determining a taxpayer’s obligations.

The clarification comes amid heightened public interest in Nigeria’s tax reforms and questions about their implications for individuals, traders and small businesses.