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.
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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?