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Note that those tariffs are related to earlier US tariffs from March, not the recent universal tariffs. The European MO in that respect is very consistent : ta

by Bayart 2y ago

Note that those tariffs are related to earlier US tariffs from March, not the recent universal tariffs. The European MO in that respect is very consistent : take time to deliberate, reach consensus and apply pressure in kind. It's at odds with the news cycle but I prefer that over instant gratification.

layer8 2y ago
Notably, the EU proposed a zero-tariffs free-trade agreement to the US in February, and again a few days ago after the reciprocal-tariffs announcement. Trump rejected the proposal, presumably because it wouldn’t remove the US trade deficit.
- lossolo 2y ago
  He said he wants the EU to pay €350 billion a year and to "pay for the past"—and I assume he'll feel emboldened to make even more demands and weaken the EU economy further. And all of that for "security" that's now pivoting to Asia? That sounds like a terrible deal for the EU. The EU spent €326 billion on its military in 2024. Add €350 billion to that, and you're looking at real-value spending higher than the U.S. military budget. On top of that, if that money is spent within the EU, you get economic growth plus full independence from the U.S. Trump is overplaying his hand with both the EU and China—especially with China, where some minerals essential to modern manufacturing are mined and processed almost entirely there (90%+ in some cases). You can't do cost-effective manufacturing in many industries without China—at least not for many years to come.
af78 2y ago
Consistent with what this German journalist at Handelsblatt reports https://nitter.net/HankeVela/status/1909259594787910009 https://nitter.net/HankeVela/status/1909259594787910009: Brussels is watching amazed, as Trump destroys the US economy. "Nobody in the Commission thought that the US government would be this stupid and self-destructive," an EU official tells me. "That they would blow up their own country by letting ChatGPT make their trade policy." EU officials are quietly preparing brutal countermeasures — but they’re in no rush. Markets are doing the work for them. Here’s what’s happening behind the scenes: Trump’s chaos is collapsing the US markets faster than any EU retaliation could. Inside the Commission and among EU governments, the mood is: Don't give Trump an excuse to blame this on others. Since February, the S&P 500 has dropped 20%. European officials believe Trump's trade chaos is backfiring — and see no reason to escalate while the damage grows organically. Inside the Commission and among EU trade ministers, the mood is calm — almost mocking. “We’ll just let them stew,” another senior official says. “If Trump doesn’t blink by the end of the month, we’re ready to hit hard.” But for now? They'll watch him sweat. German Economy Minister Robert Habeck summed up the mood: “We're under no time pressure. The Americans are under pressure and are now in a position of weakness,” he said. “The damage can get even worse — that’s why we must act calmly, carefully, but decisively.” Habeck also mocked Elon Musk’s call for a US-EU "zero-tariff" deal: “It's sign of weakness and fear. If he has something to say, he should go to his President... Before we talk about zero tariffs, stop the nonsense and mess you just made in the last week.”
sebazzz 2y ago
As an European citizen I fear that our policians still thing the US can be reasoned with. I’m sure some scenario was worked out that assumes it cannot be reasoned with, but I just would like to know that.
- tossandthrow 2y ago
  It doesn't really matter. If the US wants tarrifs, that is their business. EU merely balances it.

by Bayart 2y ago

layer8 2y ago

Notably, the EU proposed a zero-tariffs free-trade agreement to the US in February, and again a few days ago after the reciprocal-tariffs announcement. Trump rejected the proposal, presumably because it wouldn’t remove the US trade deficit.

lossolo 2y ago
He said he wants the EU to pay €350 billion a year and to "pay for the past"—and I assume he'll feel emboldened to make even more demands and weaken the EU economy further. And all of that for "security" that's now pivoting to Asia? That sounds like a terrible deal for the EU. The EU spent €326 billion on its military in 2024. Add €350 billion to that, and you're looking at real-value spending higher than the U.S. military budget. On top of that, if that money is spent within the EU, you get economic growth plus full independence from the U.S. Trump is overplaying his hand with both the EU and China—especially with China, where some minerals essential to modern manufacturing are mined and processed almost entirely there (90%+ in some cases). You can't do cost-effective manufacturing in many industries without China—at least not for many years to come.

af78 2y ago

Consistent with what this German journalist at Handelsblatt reports https://nitter.net/HankeVela/status/1909259594787910009 https://nitter.net/HankeVela/status/1909259594787910009: Brussels is watching amazed, as Trump destroys the US economy. "Nobody in the Commission thought that the US government would be this stupid and self-destructive," an EU official tells me. "That they would blow up their own country by letting ChatGPT make their trade policy." EU officials are quietly preparing brutal countermeasures — but they’re in no rush. Markets are doing the work for them. Here’s what’s happening behind the scenes: Trump’s chaos is collapsing the US markets faster than any EU retaliation could. Inside the Commission and among EU governments, the mood is: Don't give Trump an excuse to blame this on others. Since February, the S&P 500 has dropped 20%. European officials believe Trump's trade chaos is backfiring — and see no reason to escalate while the damage grows organically. Inside the Commission and among EU trade ministers, the mood is calm — almost mocking. “We’ll just let them stew,” another senior official says. “If Trump doesn’t blink by the end of the month, we’re ready to hit hard.” But for now? They'll watch him sweat. German Economy Minister Robert Habeck summed up the mood: “We're under no time pressure. The Americans are under pressure and are now in a position of weakness,” he said. “The damage can get even worse — that’s why we must act calmly, carefully, but decisively.” Habeck also mocked Elon Musk’s call for a US-EU "zero-tariff" deal: “It's sign of weakness and fear. If he has something to say, he should go to his President... Before we talk about zero tariffs, stop the nonsense and mess you just made in the last week.”

sebazzz 2y ago

As an European citizen I fear that our policians still thing the US can be reasoned with. I’m sure some scenario was worked out that assumes it cannot be reasoned with, but I just would like to know that.

tossandthrow 2y ago
It doesn't really matter. If the US wants tarrifs, that is their business. EU merely balances it.