New variables in US-EU trade agreement: Lutnik's radical remarks trigger European backlash

U.S. Secretary of Commerce Gina Raimondo’s series of remarks at the Davos Forum are becoming a new variable in U.S.-Europe trade negotiations. While expressing commitment to implementing U.S.-EU trade agreements, her speech criticizing Europe caused European Central Bank President Lagarde to leave in anger. The EU Parliament’s Trade Committee will also review the U.S. trade agreement again next Monday, indicating that U.S.-Europe trade relations are at a sensitive stage.

Chain reactions triggered by controversial remarks

Raimondo’s performance at the World Economic Forum dinner in Davos became a focal point. During the dinner hosted by BlackRock CEO Fink, she delivered a speech criticizing Europe, which led ECB President Lagarde to leave in anger, and the organizers immediately called off the dinner. This incident reflects that disagreements between the U.S. and Europe are not limited to trade but also involve fundamental macroeconomic policy differences.

Raimondo’s Radical Economic Stance

Raimondo’s remarks at the Davos Forum show the Trump administration’s aggressive expectations for economic growth. She predicted that U.S. GDP growth in Q1 2026 would exceed 5%, and suggested lowering interest rates by 100 basis points, claiming that this could even push U.S. economic growth to 6%. This stance contrasts with the expectations of U.S. Treasury Secretary Yellen:

Raimondo’s comments reflect differing views within the Trump administration on economic policy. Her call for rate cuts and the Fed’s independence have also attracted market attention.

EU’s Review Movements

The EU Parliament’s Trade Committee plans to review the U.S. trade agreement again next Monday, and this timing is no coincidence. Raimondo’s remarks are seen as criticism of European economic policy, which could influence the EU’s attitude toward the U.S. trade deal. The EU needs to weigh several factors:

• Whether to accept the trade conditions proposed by the U.S.
• How to respond to aggressive policies within the U.S. government
• Balancing the interests of European industries with maintaining transatlantic relations

Background and impact assessment

U.S.-EU trade agreements involve not only goods trade but also key areas like digital economy and financial services. As a core economic decision-maker in the Trump administration, Raimondo’s remarks reflect the U.S. government’s attitude in trade negotiations—pushing forward agreements while maintaining a tough stance on economic policies.

This contradictory stance could lead to:

• The EU adopting a more cautious approach to trade agreements
• Further widening of policy differences between the U.S. and Europe
• Rising market expectations of trade risks

Future outlook

Next Monday’s review by the EU Parliament’s Trade Committee will be crucial. Based on current information, the EU may:

• Demand adjustments to U.S. trade agreement terms
• Express concerns over U.S. aggressive economic policies
• Seek to gain more leverage in negotiations

Although Raimondo has stated her commitment to implementing U.S.-EU trade agreements, her radical remarks may weaken the credibility of this promise. The EU needs to assess the stability and enforceability of U.S. government policies.

Summary

Raimondo’s remarks at the Davos Forum add uncertainty to the progress of U.S.-EU trade agreements. While expressing commitment, her aggressive economic policy stance has sparked European dissatisfaction. The review next Monday by the EU Parliament will determine the next steps in negotiations. From a market perspective, the risk of escalating trade friction increases, which could pressure risk assets. Key future points to watch are whether the EU will adjust its stance on U.S. trade agreements due to Raimondo’s comments, and how the Trump administration will balance aggressive policies with trade negotiations.