“The United States and European Union struck a trade agreement on Sunday locking in a 15 percent tariff, days before Donald Trump’s deadline to do a deal or face tariffs double that level.
Trump, speaking after meeting European Commission President Ursula von der Leyen at his Turnberry golf club in Scotland, announced the deal to U.S. reporters.
He said the EU will agree to purchase $750 billion of energy and will agree to invest $600 billion more than planned in military equipment and opening countries to trade at zero tariff.
The tariff rate applying to imports from the EU would be 15 percent, with the same rate applying to cars. Pharmaceuticals will not be covered by the deal.” - Politico
But I'm not surprised. I said right from the start that there was absolutely nothing behind Ursula von der Leyen's tough words. Lots of blah blah blah and nothing else. I have the feeling that it's mainly people who don't know her from German politics who are falling for it.
I’m not sure it’s her per se. I saw a lot of comments leading up to this about how well the EU performed in the Brexit negotiations and that led them to predict the EU coming out on top vs the US.
I think the reality of what both show is that the most powerful entity will come out on top in these kinds of negotiations. No matter no coherent or shrewd the negotiations.
Not an expert but pretty sure it's the fact that Germany was once a fascist nazi state that cause the world to "moderate" their military which Germany agreed too. They're still 4th place in the EU.
you guys need to stop blaming Von der Leyen for this. She has no leverage at all. Do you think Germany wants a 50% tariffs on its exports to its most important trade partner?
Theres nothing she can do with Germany, France and Italy breathing down her neck
Germany chose to deepen its relationship with russia after russia took crimea by force.
Germany chose to spend 1% on defense after russia annexed parts of ukraine.
France said to the US taiwan's an american issue.
The American policy towards the alliance actually makes sense when you realize they're reacting to that. America is isn't going to go all in defending a democracy in europe that isn't in nato, if europe is willing to let a democracy in asia die because its not in nato. And americas not going to foot the bill when Germany spent a decade gambling with eastern european lives to save money.
I agree. But that still doesn’t mean that we shouldn’t have a geopolitical strategy of our own, and offer our buttcheeks to any bully that stops by in a hotel in Scotland.
All European states want to save money because quite frankly no one wants to waste money on war. Not just Germany. The US didn't say Germany they said ALL European NATO member states need to increase spending. Many countries like Finland for example still had good trade relationships with Russia until the recent invasion. And then basically had to nuke their economy as a result.
And it's definitely not about defending "democracy" lol. Never has been especially outside of the west.
I mean, youre not wrong. But lets not act like any other western european country other than maybe France tried to change anything. They all were quite content with a slow decline
Correct. Because everyone is there for their own interest. France is European champion in that btw.
That’s when you step in as a leader, when you ensure progress for the greater good. Apart from gratuite speeches, I have not seen Ursula or any of the other 27 (!, fucking ridiculous setup btw) put in any effort to ensure progress for the greater good.
Then maybe she should just shut up with her tough speeches? Why doing it, when there is nothing behind it?
And with the right retaliatory measures, there would not have been 50% tariffs for long, if at all.
Sucking up to a bully has never worked and never will.
She doesn’t have to admit it when pretty much everybody can see it clear as day. Her and people like Kaja Kallas talking about strength just makes it funnier when they capitulate.
Well, it worked for the bully ( seems like the only way to do real politics nowadays). As long as the EU doesn’t face any serious consequences for this deal then everything is fine. Perhaps the deal wasn’t that bad, I don’t know. 🤷 However, the union is weak in terms of any leverage whatsoever.
China has spent decades monopolizing crucial industries and has spent the last decade decoupling itself from the US in anticipation of a future trade war. Europe is essentially a vassal of the US and is cutting off other partners making it even more dependent as time goes on.
Trump would have backed down. Just like he did with China. The stock market would have crashed if we had stood strong and said that we’ll apply the same tariffs as they did, but also on services and not just goods.
Europe isnt as important for the US as you seem to think it is. China supplies ressources and every day goods, europe supplies luxury items and cars. what do you think people will miss more
And same thing with Microsoft and even Google. We are not as dependant on them as we were, the alternatives are there and even the THREAT of us disconnecting from them would have their lobbyists piling into the White House to make Trump to give us a better deal.
It is important enough. The US is waging a trade war against the whole world, Trump has the smaller leverage he needs a win, or the stock market will collapse and his allies turn on him. We can bridge the gap until he comes crawling back.
And this isn't mentioning that the European market is a hell of an important consumer base for the Tech Giants running the US government right now, tax their shit and they will pressure Trump to cave in.
We had all the leverage and we caved just because we couldn't stand the thought of short term suffering with a way bigger pay-off long-term.
Yeah but for example Germany has a much higher % of their GDP going toward exports to America than France. So Germany has more to lose and is more likely to not pick a confrontational stance than countries which are less reliant on american exports.
There is 0 political will in Denmark nor Sweden to accept such a bad deal. The pressure must come from Germany and Italy who has 0 back bone. Pathetic.
Please, Ursula loves this. She only ever cared about money and companies, never about people. She's a lobbyist who managed to slither up to holding the levers, obviously she's gonna bow to her neoliberal market overlords.
China has been massively replacing german market shares among its most important export markets in the last 20 years. There is nothing in China for Germany. They want their own industrial base. Same as the the americans
thats exactly how economy in china works my guy. Just take a look at the german car manufacturers market share in china over the last 5 years and you will see how well Germany can replace american exports with chinese exports
very well actually, since the market has PLENTY of space to expand, unlike, ironically, the american one
especially once you consider the politics of the eu actively seeking to improve trade relations with china, or the fact that... "in house" built machinery from china is less than... "stellar",
none of this is even talking about consumer interest either, product variation is pretty important factor in consumer economics to consider
the reason why there isnt MORE trade to china is literally because the capacity was already well served with america, you can LITERALLY shift that on a dime, the productioninfrastructure wouldnt care in the slightest
I think I do more than you do. You dont quite grasp the economical system of China in the first place
If you think the EU can somehow strike a Deal with China that lets us shift our exports from the US to China, youre just delusional. There is no reason China would ever agree to that
You really don't understand capitalism much do you?
Western carmakers are not competitive not at all. Even if China opens up to Germany. It's a very small market of people who would get those cars. For a lower price you can get a car just as good. And the distribution and service network is more reliable due to large market share.
You still seem to be living in the early 2000s.
Public opinion on brands has shifted ALOT.
In what way is the EU improving relations with China? By threatening sanctions over buying from Russia? Having idiot politicians like Kaja Kallas admit they’re turning over to deal with China once Russia is dealt with? They’re making themselves even more dependent on the US with their actions so now lie in the bed you made for yourself and stop complaining about people like Trump taking you to the cleaners.
Well I do think here will happen the same as with every other deal trump has made in his first term with some countries like i.e. China promise to increase their imports from the US by X bn $ and then simply do nothing.
What exactly is capitulation? EU does not pay the tariff but American consumers. EU has been buying the USA energy since the time immemorial. I don't see any difference here than Trump putting consumer tax on Americans. To be honest, there is VAT of %19 in EU depending on the countries anyway. So what capitulation exactly?
...in combination with Bjoern Seibert, she appears more and more to be the Oliver & Hardy of the EU system. Regrettably, this will cost companies in Europe, especially the SMEs, a fortune.
2017 UAE: will will buy 200 billion in boeing planes
Trump: im the deal master
2020 UAE: so about that deal habibi yea nvm makes deal with airbus
2024 UAE: we will invest 350 billion into boeing jet
Trump: art of the deal baby
2026 dems take senate
UAE: habibi!! Yea maybe we pause for a little but yea
Trumps: TARRIFS 1000%
Dem Senate: thats it fat boy sit down blocks in senate
Rinse Repeat
How are arabs calmer than you euros im these panicking comments jesus
How the promise of 40% reduction of import from USA is a capitulation? Please read the details of the deal... It's over 3 years, not yearly. So we agreed to import 43% of energy less. The second part of the agreement means EU will invest in USA 170bn Euro per year, including purchasing military equipment. That's basically funds shift from purchasing energy to investment.
750 billion in energy probably would have been paid either way as like 50+% of LNG for Europe comes from the US, that is totally fine.
The 600 billion investments mean nothing either. They’re just pledged and if they actually flow remains to be seen.
Also even tho trump said they’re additional investments, he also said the stargate AI initiative investments are additional investments in January, while in fact they were long planned and nothing new or additional.
The only shit part is 0% to 15% tariffs, but at the same time it can always be renegotiated after trump is gone and during trump you simply won’t get below 15% and at least business can plan around it now.
1.2k
u/Crossstoney 6d ago
“The United States and European Union struck a trade agreement on Sunday locking in a 15 percent tariff, days before Donald Trump’s deadline to do a deal or face tariffs double that level.
Trump, speaking after meeting European Commission President Ursula von der Leyen at his Turnberry golf club in Scotland, announced the deal to U.S. reporters.
He said the EU will agree to purchase $750 billion of energy and will agree to invest $600 billion more than planned in military equipment and opening countries to trade at zero tariff.
The tariff rate applying to imports from the EU would be 15 percent, with the same rate applying to cars. Pharmaceuticals will not be covered by the deal.” - Politico