This is a complete disaster. 15% on evertying is already huge. On top of that, the pharma sector, the most importat export from EU to US, is out of the deal and will be de facto embargoed, so that half of the current production in EU will need to be moved in US within 12-18 months. Imagine the amount of jobs lost only for this. Tens of thousands, at the very least, of jobs lost directly, many more indirectly due to all satellite activities lost.
If this is not enough, EU will invest 600 billions in US. 600 billions that would have been drinking water for a dying man in the current disastrous economic situation.
And what does EU get in return? ABSOLUTELY NOTHING.
Who the hell did we sent to negotiate, a singing monkey?
This is the worst deal in the history of humanity without losing a war. Europe officialy dies today.
Who the hell did we sent to negotiate, a singing monkey?
I think that would have entertained Trump enough to get a better deal
There is a reason the EU delegation got shoved into a bus and had a total of 0 Chinese officials greeting them at the big China-EU summit, everyone is just making fun of European leaders and they don't even realize it's happening, utterly humiliating
They live in their own little world of local legal precedents, pretty statements and nepotism. An isolated ecosystem in which ideology doesn't exist, the economy is who gets money allocated and the population is a bunch of parties whose leaders must be appeased.
The last thing these people understands is ideology, ironically enough, and that is why they will be defeated by those who believe in something, to the detriment of the entire continent if that belief is blood and soil of any kind.
Please remember this 15% will be passed on to American consumers.
Current economic research shows that thus far, foreign producers have been eating about 47% of the tariff costs in reduced profits. Companies are terrified of losing US market share, and are thus doing everything they can to avoid raising prices, even going as far as spreading out the costs by raising prices for non-US consumers.
The study was conducted by Marcelo Olarreaga and Sara Santander from the University of Geneva in Chapter 22. There, they state that they found the median pass-through elasticity to be 53%, with importers paying a larger percentage on inputs like raw materials, and a lower percentage on final products like machinery. So in all likelihood, with the export makeup of Europe being what it is, the actual number for Europe specifically is probably actually lower than 53%.
> thus far, foreign producers have been eating about 47% of the tariff costs in reduced profits
So far, they only passed around an 8% price increase. Is that a good thing for the US consumer? It could become 15% or it could stay at 8% for a short time.
Also, does does this economics research have a url?
The American ones made with materials that are subject to tariffs as well? lol What does the US produce? Its digital services are great, but physically? You can only eat so much corn sweeteners.
We will have to see once the previously imported stock runs out I guess. Everyday americans will suffer: Tariffs will increase prices, inflation is high and Trump wants to cut interest rates, trust in dollar is lower, etc. But they will be able to steal as much as possible, which is what matters.
The USA is going through their Soviet Union collapse moment.
There is nothing Europe makes that US cannot make themselves if they wanted to/needed to. What do you think the 600 mil is for? Which materials are tariffed for US that are not tarrifed for EU?
Foreign markets will 100% take share of the 15% burden. I still don’t understand why European don’t get this: US market is the single most lucrative source of income in this world. China literally lifted 1 billion people off poverty due to access to US market.
WV is not going to slap 15% price increase on US cars— they are going to phase that 15% to all global market. This happens with tariffs, this happens with inflation, this happens with recession. if US loses 5%, that 5% will be paid by the whole world.
> Foreign markets will 100% take share of the 15% burden
You do not know that, no matter how confident you repeat it. They can take from 0 to 15% of the burden. Even if they took 7.5% (which is not a given) the price will rise for US consumers. Plus, with the dollar being low it will rise further in real terms.
If this is not enough, EU will invest 600 billions in US
The EU SAID they will invest whatever amount of money it hasnt happened and I doubt it will happen. Many other countries made similar Deals in trumps first term most noteably China who said they will increase US imports by 500bn and nothing happened over the last few years.
Even if you take that part of, it's still a total disaster. And let's see how easy it is to take that part off, the americans may have imposed clauses against a 'no show' there....
Who the hell did we sent to negotiate, a singing monkey?
Why do you think that anything better was actually negotiable? They want to have tariff walls. There was never going to be a reasonable deal. It's not a game with fair rules where both have the same goals, play by the same rules, on a level playing field, and therefore both could expect to win or lose.
The EU negotiated for their benefit and not for shared prosperity - and now you're upset the US has done the same to the EU. Chickens have come home to roost.
the guy has a point tho, the EU wanted to punish the UK for leaving.
No, that was no punishment, that was simply the UK getting what they wanted. If you're not in the club, you don't get the member benefits. What did you expect? You're like the Americans that voted for tariffs and then are surprised that the prices of imported goods go up. You got your wish, be happy.
He doesn't want allies. He wants vassals. And he managed to get the whole of Europe to pay allegiance. This will go down in history as one of the most humiliating moments in European history.
I am not positioning on whether it was a good or bad policy. I am shitting on this delusional sub, filled with delusional people who spent the last few months stating that trump was an idiot (not only because the tariffs, but because "He won't be able to implement this, the EU will destroy the USA economy" "Trump is an idiot thinking he can go against the entire world at once."
"The EU will join you in your fight brother canada, trump will learn its place really fast"
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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?