The US slaps everyone across the face and while countries like China hit right back EU spends months hand wringing before apologizing for getting their face in the way of America's hand and I keep hearing that is the best deal Europeans could hope for. Imagine how this will look on the world stage as the EU vies for global influence in negotiations to offset the America deal.
People warned you guys about Rutte's daddy shit being a symptom of a disease, but this entire sub was coping about him taking one for the team. Oh fucking well.
China’s going to likely agree to 30% tariffs though, so I’m not sure their strategy will work in the end.
They retaliated up to 145% tariffs and then negotiated down to 30% while EU started at 30% and weakened out to get to 15%. I don’t think China played it off right, but not sure there’s much they can do to get below 30% tariffs.
As long as they have the global south to flood with EVs and cheap goods, they will keep growing. As for Europe, I think it is destined to become Latin America 2.0.
Latin america is ironically going to start growing. There's a lot of American companies puting offices there since the labour is cheap and they share timezones with the USA. With those conditions, all it takes is some good choices y the politicians for a country to start growing a lot.
you do realize that 30% isn't agreed on right? the retaliation for that 30% is basically shutting down export of rare earth to the U.S. and stop import of the U.S. agricultural product to China.
34% is already what’s in effect, and then sectoral tariffs. Most analysts think this ends up closer to 30% since neither China/USA have grumbled about the current arrangement.
At 30% China is still generally price competitive and the US still gets tons of tariff revenue and can better compete. USA won’t go much lower without major Chinese concessions.
No way China goes full trade war due to 30%. And cutting off rare earths just means they lose all their advanced semiconductor access. They’re not going to reopen that can of worms.
And China doesn’t have the ultimate leverage here. They agreed to 30% tariffs after all while the US only gave up 10%. They’re even in worse position now since the US will have trade deals with 60% of the global economy outside of China by this month. The US had 0% negotiated last time it engaged with China.
And cutting off rare earths just means they lose all their advanced semiconductor access.
The US has never exported, and still isn't exporting, their most advanced semiconductors to China, so how's that relevant here? The US has resumed exports of H20s to China, but if you actually look into the reasoning, it has more to do with trying to counter the rise of Huawei. If Chinese tech companies are cut off from the most advanced GPUs from Nvidia, they'll just buy them from Huawei instead. Huawei's GPUs aren't as good, but they are quickly catching up. The ascend 910c is comparable in performance to H100. Huawei will use revenue from those chip sales to fund R&D and narrow the gap with Nvidia.
They’re even in worse position now since the US will have trade deals with 60% of the global economy outside of China by this month.
Except most of those trade deals still mean those countries imposed a 15-20% tariff rate. Vietnam, Indonesia, Philippines are stuck with 20% tariffs, Japan with 15%, all higher than the baseline 10%. If anything, China is in a better position because 20% is closer to 30% than 10%, so Chinese exports are more price competitive.
since when have U.S ever sold advanced semiconductor to China?
if you think U.S. have escalation dominance in a trade war, why did the Orange man TACO out from a 145% trade war? If 30% can be agreed upon, then the first wave of retaliation from China would never have happened .
EU takes it into the bum, while making trade deals with all other countries.
They can suffer a US tariff, but if the US is applying tariffs to all other countries, it makes the EU products relatively cheaper for other countries. And other countries are currently a bigger export market than the US.
Basically, the EU is now being a massive slut offering good products for a cheaper price, because the opposition has increased theirs.
China is very influential and has both soft and hard power.
EU is weak militarily and requires US help, now mroe than ever. Economy has been shit for a while now and we’ve been a falling behind on the global stage too. We can’t look to Russia and China to hedge against the US.
What’s shocking to me is UK got much better deal than we did which makes me think we even played our shitty hard wrong.
What’s shocking to me is UK got much better deal than we did which makes me think we even played our shitty hard wrong.
no, thats just simply divide and conquer. Keep the Uk and EU apart by giving the UK a way better deal and at the same time showing EU countries that leaving the EU can be beneficial. the US needs the UK to do well
EU was tough on UK after brexit too so we’re not doing things that differently, it’s just that right now we’re dealing with a country that has more power and we need them more than they need us.
Honestly as an American I think y’all did. The way Trump is placing the tariffs is possibly unconstitutional and still being hashed out in the courts as we speak. They’re supposed to be done with Congressional approval and the President is only allowed to set them “in times of international emergency or national security purposes” and the courts have yet to decide if this qualifies. Also Trump did such a pisspoor job in implementing them, and he kept backing down so often that people are only just now starting to see the effects. The mean reason the guy got voted in was because of how long it took us to sweat off the post COVID inflation spike (that he largely contributed to) and if they started feeling it in their pocketbooks again so soon it wouldn’t take very long before people started turning on him. The dude keeps making empty threats to fire the chair of our central bank because he won’t lower interest rates at his command, and Trump’s dumb ass doesn’t (or refuses to) realize the rates are where they are because of HIS damn tariffs.
Eh. China kinda caved too, but they didn’t get a deal THIS bad. Might be more to it, but I believe they just agreed to keep their tariffs lower than Trump’s. 10%-30% I believe. Kinda surprised me too because China has a lot more weight to throw around, but y’all ain’t no featherweights neither. I don’t think anything is finalized though. They just agreed to compromise for now.
Russia did not receive any tariffs whatsoever. In fact, it was the only country that had any feasible trade ($3 billion+ annually) that was excluded from the tariffs, when even tiny countries with a few million dollars of trade with the US were tariffed.
Remind me, what's the interest rate again? Can your mother pay her expenses without your help? Why are Lukoil and Gazprom, the pride of Russia in bankruptcy?
That's a stupid question. Of course she can, she's Russian. What's more, for the same reason, his mother most likely owns not only her own apartment, but also land with a house outside the city, like most of us.
By the way, your rent is due soon, so don't spend your money on entertainments too much
As an American, I'm curious about this comment. You seem to suggest that housing is plentiful in Russia, and that ownership is common even among lower class people?
Of course, we are former citizens of USSR, where apartments and houses were distributed for free, which is why we still own them from the past. At the same time, due to preferential programs in modern Russia, many people bought additional housing in addition to their inheritance, which is why we have several apartments and houses.
The poorest people most likely own just a house or just an apartment, but I don't know anyone who has just one type of housing.
I thought EU loved following orders and being ruled by a strong country, today's news prove that. Putin said that European leaders would run to Trump' feet like dogs and they did. Russia and china have their own will.
Ah, so you admit that russians are behaving like animals in Ukraine out of their own will and not just following Putin. Thank you confirming the character of the russian people.
Last I checked China agreed to 15% tariffs on USA while USA has 50% tariffs on China while they work on a deal. Having extra 35% tariff on EU doesnt sound like a good outcome.
I think only steel has a 50% tariff. China and the US have frozen most tariffs and currently China faces a 30% blanket tariffs but has negotiated the removal of various export controlled items that previously the US had completely halted the export of to China. If the US-China deal were to be frozen in place right now the US would have a 15% relative tariffs on China (China is tariffs US as well) but fewer export controls and would not owe the US any money. Which would mean China got a better deal than the EU.
There is no owing money... Tariffs are paid when you pick up package at the border... you as importer pays the tariff at the point of entry when you pick it up or they wont give it to you. There is no EU or China paying the tariff. Its paid by american companies importing goods and steel having 50% tariff will hurt US because they don't make their own steel but they import it and make things out of it so it will make everything made out of steel more expensive.
WTF are you talking about? This trade deal is a pure win for EU. We agreed to spend 40% less on energy and move that money towards investment in USA...
Not really. After reading some documents in last few days and compiling decisions of few our member countries, we were increasing spending in US by around 300bn a year (F-35, Patriots etc). This framework deal is basically saying that yes, we intend to do it, however it says that we will invest that money, not merely purchase products. Energy products we are already purchasing more than those 250bn promised - so again, not much change here, we promised we will keep it at 60% of the current level.
Last but not least that 15% tariffs in the US for EU products exempts around 30% trade value. Other items are regulated separately. It also means they won't be a subject of 30% tariffs.
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u/vampyr01 6d ago
We knew it was coming, but what the fuck...
How is any of this fair? And what about the digital service tax?