Sen. Rand Paul, R-Ky., on Tuesday criticized the new U.S.-European Union trade agreement, telling Newsmax that the 15% tariff on European imports amounts to a tax on American consumers.
Speaking on “Finnerty,” Paul said the trade agreement’s figures, including Europe’s pledge to buy $750 billion in U.S. energy and $600 billion in other products, raise questions about how such purchases are implemented.
“Well, there's some things I don't quite understand,” Paul said. “How does the president make a deal where they buy $750 billion worth of energy? Does the president sell energy to Europe? Does Europe buy? So, I don't quite understand these kind of deals.”
The agreement, announced Sunday by President Donald Trump and European Commission President Ursula von der Leyen at Trump’s Scottish golf course, imposes a 15% import tariff on most EU goods — half the rate the administration had previously threatened. The deal aims to avert a broader trade war between the blocs, which together represent nearly a third of global trade.
Trump described the agreement as “the biggest deal ever made,” touting Europe's plans to increase purchases of U.S. energy and military equipment dramatically, and to invest approximately $600 billion in the United States.
But Paul questioned the logistics and meaning behind such pledges.
“They're going to buy $600 billion worth of other stuff. Well, it all sounds good. I mean, these are good things and good relations, but I don't know what it means,” Paul said. “I mean, I don't know how the, you know, Europe buys stuff directly from the president, or from the government in our country. All these things are privately owned.”
The Kentucky senator focused particular criticism on the agreed-upon tariff.
“On the 15% tariff, it means that we've agreed to a 15% tax on Americans who want to buy stuff from Europe,” Paul said. “Why Europe agreed to this — maybe they don't want to put more taxes on their people to buy our stuff. But I'm not sure how this is such a huge victory.”
Von der Leyen, who called Trump “a tough negotiator,” said the 15% tariff applied “across the board” and described the outcome as “the best we could get” following months of negotiations.
Paul, who chairs the Senate Homeland Security Committee, has previously expressed skepticism of tariffs as a tool of trade policy, often warning they risk harming U.S. consumers and businesses more than foreign producers.
“Ultimately, a tariff is a tax,” Paul added Tuesday. “And in this case, that tax falls on the American people.”
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Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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