LIVE: EU-Mexico trade summit briefing — Friday 22 May 2026In a bold move that directly challenges American trade dominance, Mexico and the European Union have finalized a long-delayed free trade deal. European Commission President Ursula von der Leyen, European Council President António Costa, and Mexican President Claudia Sheinbaum sealed the agreement during a live briefing, aiming to cut reliance on U.S. markets and blunt the impact of President Donald Trump's threatened tariffs. The pact updates rules on everything from agriculture to digital services, giving both sides fresh access while sidestepping Washington's tough stance on imports. This development carries real weight for American businesses and workers. U.S. exporters in states like Texas and California could face stiffer competition as Mexico redirects more goods toward Europe, potentially hitting sectors from autos to energy. With Trump back in the White House and tariffs on the table again, the deal signals that key partners are no longer waiting around for U.S. approval. It echoes past tensions during his first term, when similar maneuvers reshaped supply chains and raised costs for everyday consumers here at home. For American audiences watching from Atlanta to the heartland, the message is clear: trade alliances are shifting fast. The agreement could accelerate efforts to diversify away from U.S. influence, leaving policymakers in Washington scrambling to respond. As global players lock in new terms, the pressure mounts on U.S. negotiators to protect domestic jobs and keep American leverage intact.Watch the full video from Reuters below.