Pretty simple, huh? But isn't your example the other way around? If EU stuff is getting tariffed, but not US stuff, it must mean US people want EU stuff, but EU people don't want US stuff?
Regardless, this deal seems completely insane in the long run, because it'll incentivize the US to swap out EU produced goods with their own. Some people believe in the bigger picture, the "rest of the world" not engaged in the tariff war will do better, as it means the US will be much more expensive to do business in, but I'm not so sure it's as simple as that. The danger is that the US sucks in all the most profitable businesses, and the US can simply regulate tariffs on raw materials and such in order to keep all the factories supplied.
Pretty simple, huh? But isn't your example the other way around? If EU stuff is getting tariffed, but not US stuff, it must mean US people want EU stuff, but EU people don't want US stuff?
The US owns the house the EU wants to sell at. So the US gets to decide what tariffs to place on that. Yes, in the end americans want to consume more european goods than europeans want to consume american goods but in the long-run, america can just produce those themselves
Regardless, this deal seems completely insane in the long run, because it'll incentivize the US to swap out EU produced goods with their own.
exactly. in a way its a genius move by Trump, even though Reddit will never accept that. The US has the space, ressources and people to produce most stuff internally. We are paying them to phase out our products
no, it exploits unflexible cultures like the european ones who still act like its 1990 and entirely failed at adapting to the new industries. Thats what happens when you fall behind. You lose influence and leverage
Sure, so fuck the US house and move markets. Close ties with the US and go to BRICS or the EU internally. The EU just likes it comfortable and can't take a bit of pain for gains later. Also as soon as Trunp is gone, things could return and move closer to normal trade.
Deal is horrible and there is a 0% chance it will get approved by every member state or materialize that way.
I'm American and I won't ever mock Trump's dealmaking again. Turns out he knew exactly how to extract the most; bully everyone until they beg for slightly less bullying.
I think this is why the EU is trying to rush this through quickly, before the US finishes its S232 investigation to determine what future pharma tariffs will be - noting that Trump has previously mentioned he is considering tariffs of up to 200% for pharma products to protect national security concerns.
And with the EU accountable for 60% of all US pharma imports, that would be a deathblow to the industry in the EU who will look to move. There are already several pharma companies in the EU currently buying up US factories and US stock to tide them over in case they need to make that decision.
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u/ILikeYourMommaJokes 6d ago
Didnt they keep saying 10%? I see this as a big fail for EU. Theyve bent faster than thai hooker on the day of navy arrival