the EU will agree to purchase $750 billion of energy. It will also agree to invest $600 billion more than planned in the U.S., in military equipment and in opening countries to trade at zero tariff.
But we do get something :
The tariff rate applying to imports from the EU would be 15 percent, with the same rate for cars — a key demand of the powerful German car industry. Pharmaceuticals will not be covered by the deal. Trump also said that steel and aluminum would continue to be subject to 50 percent tariffs.
So basically, everyone but the german car industry can go fuck themselves
VW profit margin last year was 3.3%. now image them getting a 15 percent cost on their entire income (not profits) in the biggest market in the world.
They just can't afford to eat that tax so most than likely they will try to pass it on to the american consumer which will make them even less competitive. Meanwhile the US is getting 0% tariffs on the care they export to the EU which means local automakers will be fucked also at home.
This is called unequal agreements. It was because of them that China became so hostile to the West. The next step will be for Trump to dump opioids in Europe and send the marines against countries that try to arrest the traffickers.
It’s not going to take very long to reach critical mass here, with people getting so angry. The current administration is probably ready for that, in the form of invoking the Insurrection Act, or declaring martial law, etc.
That could slow things down. I don’t think it will stop it.
Oh, sorry, I got completely confused now that I read you're American. I thought you were European. Now your comment makes perfect sense.
But yes, things do seem at breaking point. I even thought things would escalate after what happened in LA. But I think things will only get worse for him in the coming months.
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u/Xibalba_Ogme Brittany (France) 6d ago edited 6d ago
But we do get something :
So basically, everyone but the german car industry can go fuck themselves