In the span of just a few days, the United States has sealed two sweeping trade pacts first with Japan, then with the European Union that may go down in history not as triumphs of diplomacy, but as examples of strategic submission masked as cooperation. 


On July 23, 2025, Washington and Tokyo agreed to reduce steep tariffs on Japanese auto and industrial exports to 15%, down from as high as 27.5%, just ahead of their scheduled hike. In return, Japan pledged an enormous $550 billion investment into the U.S. economy, targeting sectors such as semiconductors, energy, aerospace, and pharmaceuticals. The deal also commits Japan to importing large quantities of U.S. agricultural products, including soybeans, rice, and sustainable aviation fuel.


Then came the more consequential

deal on July 27, when President Trump and European Commission President Ursula von der Leyen unveiled a U.S.-EU trade agreement from Scotland. 


The EU, under threat of escalating tariffs of 30%, accepted a 15% levy on its exports to the U.S., including sensitive sectors like autos, semiconductors, and pharmaceuticals. 


In exchange, the EU committed to invest $600 billion in the American economy, purchase $750 billion worth of U.S. liquefied natural gas (LNG) over the next three years (at $250 billion per year), and sharply expand imports of U.S. military equipment. The original U.S. demand was for $1 trillion in energy purchases a number only slightly walked back.


What stands out is the glaring asymmetry. The EU receives no trade concessions, no reciprocal tariff reductions, and no strategic offsets. It has essentially accepted a series of costly obligations investments, energy and defense procurements without gaining any concrete benefit. 


This is not a negotiation between equals; it reads more like a tribute arrangement, where the subordinate pays for favor or mercy. While American negotiators tout the deal as a victory, it represents, in essence, a massive one-way flow of European capital and strategic autonomy into U.S. hands.


The imbalance is staggering. The EU maintains zero tariffs on U.S. exports, while its own industries now face a 15% U.S. tariff wall. In return for this economic blow, Brussels is handing over hundreds of billions to buy U.S. gas and weapons often at inflated prices. 


The symbolism is unmistakable: this deal mirrors the “unequal treaties” forced upon weakened nations in the 19th century by colonial powers. But in a stunning reversal of roles, it is now Europe that finds itself on the receiving end of imperial leverage.


Even more concerning is the precedent this sets. History shows that acquiescence rarely ends with the first demand. When a major power senses weakness, it doesn’t stop it pushes further. What begins as economic submission can quickly evolve into broader geopolitical dependence. The EU has not only failed to secure mutual terms it has ceded the initiative entirely.


This moment could well be remembered as the onset of Europe’s modern humiliation not by force, but by quiet surrender to economic coercion. 


And in sharp contrast, only India and China have held their ground. With Russia effectively removed from the global trade architecture via sanctions, these two powers have thus far refused to capitulate to U.S. trade pressure. 


Particularly notable is India’s principled stand, choosing to safeguard its strategic autonomy and national interest in Agriculture, Dairy, Data Localisation, Pharma etc, rather than accept punitive terms masked as partnership. 


While others have bent under pressure, India has remained firm asserting its role as a sovereign power in an emerging multipolar order.