EU warns that its trade with the US could be effectively wiped out if Trump follows through on his threat
EU warns that its trade with the US could be effectively wiped out if Trump follows through on his threat
The European Union has warned that its trade with the United States could be effectively wiped out if Washington makes good on its threat to slap a 30% tariff on goods imported from the bloc.
The European Union has warned that its trade with the United States could be effectively wiped out if Washington makes good on its threat to slap a 30% tariff on goods imported from the bloc.
A tariff of “30%, or anything above 30%… has more or less the same effect. So, practically it prohibits the trade,” Maroš Šefčovič, the EU’s trade commissioner, said as he arrived ahead of an EU ministerial meeting in Brussels on Monday.
Šefčovič said it will “be almost impossible” for the bloc to continue its current level of trade with America if that new tariff rate is implemented on August 1 – the date stipulated by US President Donald Trump in his letter to the EU on Saturday.
Just don’t cave. Once you start down the bitch path, forever will it dominate your destiny.
Always remember: TACO.
When it comes to not being America' bitch, Europe caved on that a while ago.
That was America BT (before Trump). America TE is like a whole new country. They get a reset.
Every country should have just stopped trade with the US as soon as this tarriff nonsense started. Big mistake even engaging imo.
You do not negotiate with terrorists... Wait, what?
I imagine the strategy everywhere is to keep the lid on this while you can shift your trade elsewhere. TBH the shift should have started during the first Trump admin, but to be fair, nobody thought that Trump can out-Trump himself this bad.
Suddenly cutting off a lot of trade suddenly is a stupid and reckless move that would hurt people in their countries as much as it would hurt the US. It's basically the same behavior as Trump with his absurd tariffs, banning trade with a country, and taxing people obscenely to buy things from that country mostly work out to the same effects in practice.
Incentivizing other trade partners, and maybe slowly disincentivizing the US makes a lot of sense though. Maybe it made more sense years ago, but as they say, if the best time was yesterday, the next-best time is today.
Just a few weeks away and I'm moving from the US to Sweden. Please US dollar, hold value long enough for me to get a bank account and transfer everything
Iirc they're trying to put a tax on money leaving the US too.
Jfc, do you have a source on that? I'm going to be so fucked if that's the case
Nvm think I found it: https://taxfoundation.org/blog/us-remittances-tax-big-beautiful-bill/
Message to Europeans from an American.
It's time to start looking for other trading partners. Canada and Mexico come to mind. So does South America and Africa as a whole. Be ready for us to shit the bed in epic fashion, and make sure you're not in the poo position. And don't be afraid to punish us for our BS. Just be strategic with the payback and don't copy our fails.
It's time to start looking for other trading
The EU has been doing that. But it's difficult to replace a 30T economy, representing 15% of the global aggregate of the world's GDP.
With Tariffs, the outcome will always be a big loss worldwide. For some more than others.
Add: It's already been harming USA manufacturers according to this AP article ,
" US manufacturers are stuck in a rut despite subsidies from Biden and protection from Trump. (...).But the factory investment spree has faded as the incoming Trump administration launched trade wars and, working with Congress, ended Biden’s subsidies for green energy. Now, predicts Mark Zandi, chief economist at Moody’s Analytics, “manufacturing production will continue to flatline.”
Should probably plan for the worst case scenario where that trade is eliminated and mitigate it elsewhere as best as possible. America's leadership has become cancerous, and figuratively speaking, leaning into their isolationism and letting them starve themselves out as a consequence of not understanding how economic globalization works is probably the best shot at real change.
As a european I can only say
They'll just funelle stuff anyway they can, and profit either way, regardless of whichboeasants have to suffer
Good.