What’s in the EU-US trade deal?
“We are agreeing that the tariff straight across, for automobiles and everything else, will be a straight across tariff of 15%,” according to Trump.
Currently, most EU goods face a 10% tariff, with levies of 50% on steel and aluminum. Cars and car parts are now taxed at 25%.
Trump also said the bloc had agreed to purchase “$750 billion (€638 billion) worth of energy” from his country, as well as $600 billion more in additional investments.
The president told reporters at the start of the meeting that fairness was the main remaining sticking point.
“Europe is very closed. We don’t sell cars into Europe. We don’t sell essentially agriculture of any great degree,” he said, adding that pharmaceuticals “won’t be part of” any agreement.
What kind of title is that? They agreed 15% tariffs. How is that avoiding tariffs?
Bye, EU economy!
Initially, import tariffs will primarily hit Americans, but even a “low” 15% tax may just give local producers an edge over European producers, resulting in Europe losing economic ground from the Americans in the long run. American companies will then grow more economically while European ones will see a limit to their growth.
This deal further frees the Americans to grow economically in Europe and compete away from our own companies: they will have to pay 0% in tariffs, while other European barriers (such as taxes on tech companies) will also be removed with this deal.
The combination of U.S. tariffs versus an almost completely free market for U.S. companies in Europe will skew trade and production relations between the two economic blocs. While this may not affect certain obscure or hyper-specialised sectors immediately, much of Europe’s agricultural, industrial and tertiary sectors will suffer greatly. Especially if the Americans manage to demolish our brand protections as well, thousands of farmers in the Netherlands and France, among others, may well close their doors, along with the European tech sectors, and perhaps even the German car industry if Trump decides to subsidise the American car sector.
On top of that, details are already coming out about what America will get on top of that: deregulation of the tech sector for US companies, 600 billion to only US arms producers instead of European ones, taking over the cost of arms supplies to Ukraine… if this deal really goes through then we will go off the deep end. It is to be hoped that the few countries with reasonably straight backs (France and Spain, among others) stop this deal.
Bye, EU economy!
Don’t be overly dramatic. The impact is estimated to be 0.5% GDP. This is a bad deal for EU for many reasons but it’s definitely not economy ending. EU will try to struck deals with other partners now and diversify.
The scary part is more how weak EU is now. It missed how dangerous Putin was to its security and it missed how dangerous depending on US for security was. China understood this but EU wasn’t able to react. It’s internally divided and unable to come up with clear plan on how to defend itself. I guess I’m being dramatic now but Russia sees all this and definitely will try to use this opportunity.
0.5% GDP in what period? Because if it is yearly, it’s a lot. Any source?
For example: https://www.bruegel.org/analysis/economic-impact-trumps-tariffs-europe-initial-assessment
It’s older analysis for multiple scenarios including no deal scenario:
“An overall GDP drop of about 0.3 percentage points is significant but unlikely to push the EU economy into a recession as the EU was expected to grow by 1.5 percent in 2025 before the tariffs. It should be noted that these models do not account for all effects, such as the risks posed by a financial crisis in the US.”
“Europe is very closed. We don’t sell cars into Europe
There’s no space for oversized gas guzzlers in Europe. And the one US car brand that sold well in Europe, Tesla, was torpedoed by its own Nazi CEO. How is that Europe’s fault?
We don’t sell essentially agriculture of any great degree,”
Raise your standards for food safety and Europe will buy. Europeans are more demanding with what they stuff in their mouths. But the way deregulations and the dismantling of the FDA is going in the US, it’s not going to improve anytime soon.
Fuck those pickups, they’re hilariously oversized and the job can easily be done with a trailer. Plus those big cars consume way more energy, being way more expensive than worth. Even with leases and all that, it ain’t worth.
My neighbour has one. He barely uses it because it’s doesn’t fit on the average Black Forest road.
Why’d he even gotten one? It slurps energy and takes space, and isn’t more comfortable. Plus you can do the same with a trailer, which can be removed.
Raise your standards for food safety and Europe will buy. Europeans are more demanding with what they stuff in their mouths. But the way deregulations and the dismantling of the FDA is going in the US, it’s not going to improve anytime soon.
With Trump in office, is the period of deregulation for US now. In everything. He started with AI.
Also, if I understand correctly he wants Europeans to buy more American stuff by having Americans pay more for European stuff??
That’s true, we wouldn’t gain much from tariffing back US products (aside from looks), because we already don’t buy them for other reasons.
And the one US car brand that sold well in Europe, Tesla
Well I mean there’s Ford as well and they sell pretty good as far as I know
Ford vehicles sold in Europe are designed and built in Europe. They’re not imported.
That was true 20 years ago, but Ford has been moving more and more towards a global strategy.
The Ford Escape, Explorer, Ranger, Focus, Mustang, Mach-E, are available in both US and Europe, and I think now even the F-150 and Bronco have made it into Europe. Plus the Transit commercial range.
So no, they’re not quite separate anymore. Some models get developed in Europe (Focus, Escape), some in the US (Mustang, Ranger) but the general goal is to sell across the Atlantic.
There’s GM as well… it’s just that they have learned to make better cars for Europe, and even to make some of them in Europe…
For the nth time, tariffs are import taxes levied on the LOCALS importing from a country being tariffed (well, import tariffs anyway). All Trump did here is ensure European companies that traditionally sell a lot in the US diversify and find non-American customers to break their dependency on US customers that don’t buy as much anymore. That’s good for Europe in the long term.
As for energy, Europe needs it to avoid buying Russian oil and gas anyway. So it’s a great way for Europe to avoid dealing with sketchy petro states to get energy.
and the US is not a sketchy petro-state?
Pedo-state
They’re all sketchy apart from Norway and the UK. My point being, if you want to starve Russia of petrodollars, you can’t procure Russian oil from Russian client states and pretend it’s not Russia oil.
Europe would be better off not buying oil from dictators in the Gulf, dictators in America or dictators in Russia. But they can’t afford to forgo all of them, and the war currently raging at Europe’s doorstep is being waged by the latter. So if they have to choose which shitty countries to buy oil from, the US is part of the lesser evil mix as far as they’re concerned.
Uk? Hmm
It’s not fair to uphold everyone to norways standards though, at some point you just have to say they’re not sketchy enough. /s
The UK? not sketchy?
Hopefully buy a bit more Canadian to support them.
Although buying energy from USA means as LNG. Which is too expensive and can hurt the economy in the long run. Seems more like a bribe to avoid high tariffs for the big EU companies that export to US. Also $600 billion additional investments in US, that could made in EU.
Also $600 billion additional investments in US, that could made in EU.
I never said dealing with an overbearing ultramilitarized jingoistic fascist state was easy or convenient. I’m just saying, as concessions go, this one doesn’t run against immediate European interests that much.
I don’t know. This show looks like how to avoid bullets. We gained nothing. We just avoided the 30% tariff with a 15% one.
I think Europe sees this as a stopgap solution to mitigate the economic impact until the midterms. If the dems win the house back - which appears likely - they’ll stop Trump’s illegal tariffs and reverse those “deals” that Trump had no right to make in the first place.
Americans won’t have money to pay for it products anyway. I’m not even sure 15% will be the problem.
Ah yes another stroke in our asses. No tax for their tech corps, now this. We should read “the art of the deal”
Also remember when Merkel complained that trump was incapable to understanding the basic functioning of the EU
10 year ago I saw Germany as the most pragmatic state in EU. Professional and with a clear plan for everything. Today I see them as the most corrupt and incompetent or outright malicious member. It’s like everything they did was to weaken EU: make it energy dependent on Russia, security depended on US, run their economy into a dead end (pushing ICE cars way to long and ignoring competition from China) all while laughing at everyone pointing it out to them. It’s also the main supporter of genocide inside EU. Fucking wankers.
I’m sorry but they always were a bunch of corrupt sneaky assholes, just look at 2008. German unification was a mistake, they should go back to be a 100 warring baronies so the rest of us can live in peace.
Yeah, I’m saying that I was really naive 10 years ago.
Me too brother.
Anyway, a really nice critic of EU monetary policy is Mark Blyth, especially his book “Austerity: The History of a Dangerous Idea” is very good and approachable
Libs gonna yap. I mean dems always complain about GOP not understanding “institutions” and then roll over.
We don’t sell cars into Europe.
Ford and Tesla don’t count I guess?
The hard part is explaining why do a deal seeing that Trump is in the pedo Epstein files.
Because money is money. Europe has done worse in the past. Well we continue to do, if you think about some countries in the middle east.
15% straight across, so will the EU be levying a 15% tariff on US imports as well?
I don’t think so. If it was, there would be part of the deal.
So what’s Europe getting out of this? Or have they just rolled over and let the bully win?
yep as i figured, europe rolled over
His comb over is the worst.
What is this cuckporn doing on Lemmy main page?
