3 ms·

I usually enjoy reading your comments, so I wish you'd expand a bit here.

mk89 1y ago
I think he is talking about the fact that Trump is screaming left and right that "EU iS ScREwINg US CiTIzeNs" because he merely takes into account trading of physical products, without showing the full picture. Basically if you consider services as well, the trade surplus is a few million euros only, because EU imports a lot of services from USA.
JumpCrisscross 1y ago
Balance of trade is commonly calculated by only considering goods [1]. America’s trade deficit is a deficit in the trade of goods; we usually have a services trade surplus [2]. When this administration has messaged [3] and made trade policy [4], it has used that goods-only view of trade, i.e. it ignores services. Microsoft exporting Azure as a service has zero impact on how many goods America buys or sells. (If anything, it might increase the goods deficit if the servers Azure runs on, or the buildings its staff occupy, use any foreign components.) So by this administration’s accounting, the EU reducing its purchases of Azure is great if they e.g. buy two more Hershey’s bars. That’s economically nonsense, and that is the problem. [And thank you! :)] [1] https://en.m.wikipedia.org/wiki/Balance_of_trade https://en.m.wikipedia.org/wiki/Balance_of_trade [2] https://www.bea.gov/news/2025/us-international-trade-goods-and-services-december-and-annual-2024 https://www.bea.gov/news/2025/us-international-trade-goods-a... [3] https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/ https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-pr... [4] https://www.newsweek.com/trump-reciprocal-tariff-chart-2054514 https://www.newsweek.com/trump-reciprocal-tariff-chart-20545...
- jxjnskkzxxhx 1y ago
  I didn't know that. It's weird that I haven't seen this mentioned on the media once. Thank you.
  - tossandthrow 1y ago
    It has been widely covered in some EU media's at least.
  - JumpCrisscross 1y ago
    There was a brief moment when China threatened to retaliate against American services [1]. Shortly thereafter, Trump chickened out [2]. [1] https://www.bloomberg.com/news/articles/2025-04-11/trump-tariffs-put-us-services-trade-surplus-with-china-at-risk https://www.bloomberg.com/news/articles/2025-04-11/trump-tar... [2] https://www.whitehouse.gov/fact-sheets/2025/05/fact-sheet-president-donald-j-trump-secures-a-historic-trade-win-for-the-united-states/ https://www.whitehouse.gov/fact-sheets/2025/05/fact-sheet-pr...

mk89 1y ago

I think he is talking about the fact that Trump is screaming left and right that "EU iS ScREwINg US CiTIzeNs" because he merely takes into account trading of physical products, without showing the full picture. Basically if you consider services as well, the trade surplus is a few million euros only, because EU imports a lot of services from USA.

JumpCrisscross 1y ago

Balance of trade is commonly calculated by only considering goods [1]. America’s trade deficit is a deficit in the trade of goods; we usually have a services trade surplus [2]. When this administration has messaged [3] and made trade policy [4], it has used that goods-only view of trade, i.e. it ignores services. Microsoft exporting Azure as a service has zero impact on how many goods America buys or sells. (If anything, it might increase the goods deficit if the servers Azure runs on, or the buildings its staff occupy, use any foreign components.) So by this administration’s accounting, the EU reducing its purchases of Azure is great if they e.g. buy two more Hershey’s bars. That’s economically nonsense, and that is the problem. [And thank you! :)] [1] https://en.m.wikipedia.org/wiki/Balance_of_trade https://en.m.wikipedia.org/wiki/Balance_of_trade [2] https://www.bea.gov/news/2025/us-international-trade-goods-and-services-december-and-annual-2024 https://www.bea.gov/news/2025/us-international-trade-goods-a... [3] https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/ https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-pr... [4] https://www.newsweek.com/trump-reciprocal-tariff-chart-2054514 https://www.newsweek.com/trump-reciprocal-tariff-chart-20545...

jxjnskkzxxhx 1y ago
I didn't know that. It's weird that I haven't seen this mentioned on the media once. Thank you.
- tossandthrow 1y ago
  It has been widely covered in some EU media's at least.
- JumpCrisscross 1y ago
  There was a brief moment when China threatened to retaliate against American services [1]. Shortly thereafter, Trump chickened out [2]. [1] https://www.bloomberg.com/news/articles/2025-04-11/trump-tariffs-put-us-services-trade-surplus-with-china-at-risk https://www.bloomberg.com/news/articles/2025-04-11/trump-tar... [2] https://www.whitehouse.gov/fact-sheets/2025/05/fact-sheet-president-donald-j-trump-secures-a-historic-trade-win-for-the-united-states/ https://www.whitehouse.gov/fact-sheets/2025/05/fact-sheet-pr...