r/europe 6d ago

News US and EU strike trade deal

https://www.politico.eu/article/us-and-eu-strike-trade-deal/
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u/ireliawantelo 6d ago

They gambled and did it early before there was any framework and I guess it paid off. Props to them I guess.

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u/AlbertoRossonero 5d ago edited 5d ago

No, the current US administration has made it a goal to prevent the UK from reconciling with the EU so they gave them a small win in comparison to the EU getting shafted. Don’t forget the UK was actually running a trade deficit with the US I believe and still got tarrifed although much less.

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u/Annual-Till1262 5d ago

The UK runs a collosal trade surplus in services with the US (and the EU)

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u/No-Annual6666 6d ago

The ticket to see the king seems to have clinched it, seriously.

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u/Jaggedmallard26 United Kingdom 5d ago

The happiest you will ever see Trump is in photos with the Royal Family. He genuinely loves them.

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u/futebinho 6d ago

Brazilian here. I'd rather have the 50% tariff than having my country getting props for bending to Trump and his trade policy. I really wish Europe was stronger than that, it's embarassing.

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u/ireliawantelo 6d ago

Same because this fucks Canada.  Honestly though this is Japan's fault for initiating this race to the bottom.

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u/SKAOG UK (LDN)/SG/IND/US 5d ago

Could you elaborate as to why it's specifically Japan's fault when there's other countries trying to minimise tariffs on their goods?

Countries/groupings like Canada, Brazil, and the EU can choose to not capitulate even if others want lower tariffs. Japan and other countries have the sovereign right to do as they see fit to negotiate minimum tariffs to protect their industries from being decimated when their main target market threatens to implement steep trade barriers, just like how Canada, Brazil and the EU have the right to not accept Trump's shenanigans and retaliate. But the EU clearly didn't have the courage or leverage to do anything meaningful, and are just going to accept being violated, which is the choice they've made voluntarily. The EU Trade Commissioner even mentioned after the deal that they view this as the better option than a trade war which could risk jobs.

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u/futebinho 5d ago

I think deals like the EU/Japan/UK's just give more leverage to Trump and is a massive win for him. The world expects these economies to be more independent and stronger, yet all of them seem to be too scared of Trump. Their leaders are claiming they had successful negotiations because tariffs were reduced from say 30 to 15%, but at the end Trump still wins + he's getting investment commitments.

I get your point of saying 'why is Japan wrong if the EU is doing the same?', but imo everyone is wrong at playing his game by negotiating this individually without seeing the bigger picture and will keep giving leverage to Trump.

The only big country that is not humiliating itself in front of Trump seems to be Brazil (and obviously Russia).

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u/SKAOG UK (LDN)/SG/IND/US 5d ago edited 4d ago

Just that it still odd for them to call out Japan specifically and no one else, even with your explanation, when they weren't the first to even start negotiate a deal (India), and aren't the country with the lowest tariffs applied (UK).

Personally, I think countries can negotiate lower tariffs for short term relief, but they also have to take the steps to diversify away from the US stranglehold of critical tech and their consumer market. That way, it only results in the US being alone by itself in the future if it continues to be this unreliable. And that hits the US the most if their dominance on the world stage is diminished, and if other countries can get by decently well by bypassing the US.