How the Tariff’s Tariff War accelerated Validation of the UE-Mercosul Agreement and how this can change the game of international trade

EU-Mercosur Deal Gains Momentum Amidst Trump Tariff Tensions

BRUSSELS/BRASÍLIA – The European Union and Mercosur trade agreement, poised to become the world’s largest free ⁢trade zone, is gaining traction as‌ a strategic response to escalating trade tensions instigated by former U.S. President Donald Trump’s tariffs. While not ⁢a direct “remedy” for those tariffs, the deal aims to bolster the international standing of⁢ both blocs, reducing​ their individual vulnerabilities and potentially creating an economic power equivalent to the United States.

The‍ agreement’s acceleration stems from a simple international logic: the EU seeks⁤ to ​diminish its exposure to U.S. trade policies, while Mercosur, led⁣ by Brazil, aims to expand its⁢ global influence.⁤ Studies suggest the EU-Mercosur agreement could increase ‍bilateral ​trade by‌ as much as 70% and⁣ intraregional Latin‌ American trade by 38%, culminating ⁤in a combined GDP ‍rivalling that⁣ of the U.S.

On September 3, 2025, ⁤the European Commission proposed ⁢the signing and adoption of the agreement, a move ​intended to solidify these economic gains. Though, analysts caution‍ that the U.S. is unlikely to passively accept a⁢ strengthened EU-Brazil alliance, suggesting‌ a dynamic ‌interplay of strategic maneuvers in international ⁢relations.

The deal’s potential ⁤impact extends beyond trade figures. It represents a broader effort to diversify economic partnerships and create a more balanced global trade landscape.

Filipe Prado⁤ Macedo da Silva, a​ professor and researcher at the institute ​of Economics and International Relations (Ieri), Federal University of Uberlândia (UFU), contributed to the analysis of this developing situation.

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