Trump announces tariffs of 30% on the European Union, starting August 1.
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It is indeed bad for US businesses and consumers, and therefore for US economy in general, but as US market is so big and important, it's also bad for countries doing business with US, including in Europe, like, for example, German carmakers or French and Italian alcohol exporters.
France and Italy could export to other countries easily or transform their cheap wine into properly aged wines and liqcours, with actual market value and product quality. Downsizing the industry wouldn't be a bad idea, also.
Germany is already dwindling in their car industry. Could serve as a call to innovation an review of business practices.
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Ah yes my favorite Country, the European Union.
From the economic point of view the EU acts very much like a single country. Even the EEA can be seen as single entity if looking from the perspective of an American trade negotiator.
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But I was told here Ratte debasing himself was a master play to get the orange moron off our backs.
What happened?? -
They need to stop pussy-footing around with Trump.
He says 30, they need to reciprocate with 60 percent, and will back down to 20 when he cancels the 30.
Make it permanently harmful to threaten this bullshit.
Suspend American IP in Europe (which is a counter-tariff measure that the EU has already approved regulations for).
Watch the TACO do his thing.
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It is indeed bad for US businesses and consumers, and therefore for US economy in general, but as US market is so big and important, it's also bad for countries doing business with US, including in Europe, like, for example, German carmakers or French and Italian alcohol exporters.
Though that's only true for the first few years. Once alternatives are established and trade with America is reduced it will be less and less until America will be not interesting anymore
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Though that's only true for the first few years. Once alternatives are established and trade with America is reduced it will be less and less until America will be not interesting anymore
One can only hope.
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One can only hope.
Unless Trump starts ww3 we will have a few more painful years of transition and then the new normal will be normal and the better deals will win, which won't be with America.
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Unless Trump starts ww3 we will have a few more painful years of transition and then the new normal will be normal and the better deals will win, which won't be with America.
We must not forget that it's not only about trade. There's also a military dimension, and if all US support to Ukraine ends abruptly and completely, then there's a very real chance that Putin will win soon. That creates an entirely new security situation, where Russia may well attack EU countries next (like the Baltics, for example).
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OK, what shares is he and his folks buying... We should do the same. His Black mail worked last time, should work again!
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Hey! That's in about two weeks!
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I'm not great on economics but the concept of a tariff is that the entity importing something has to pay an extra levy in order to place in a market a given product.
This follows that an american importer of any trade goods of european origin will have to pay an extra thirty cents for each dollar such goods cost.
That extra cost will then be passed along the commercial chain, down to the final client.
So, prices go up for general public.
Meanwhile, nothing is stopping the country of origin of such products to divert their business to other countries, thus maintaining their normal activities.
Am I wrong or this whole thing is disastrous for the USA?
You’re right in how it works, except when you say nothing is stopping a country to sell elsewhere, demand/supply/market conditions do. They are probably selling to other countries as much as they can anyway, and still sell to the US as well. So when they can’t sell to the US, it won’t be easy for those companies to find other customers to take this volume. If they existed, they would have been sold to anyway.
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You’re right in how it works, except when you say nothing is stopping a country to sell elsewhere, demand/supply/market conditions do. They are probably selling to other countries as much as they can anyway, and still sell to the US as well. So when they can’t sell to the US, it won’t be easy for those companies to find other customers to take this volume. If they existed, they would have been sold to anyway.
But maybe not at a price between 1 and 1.3 dollar.
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He is saying that if the EU wants to do a trade war the USA will deliver.
Deliver what, tariffs??
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At first I thought it might be a standing point for Orbán to point out that they want this (but the bad EU, yadda yadda), but after actually reading that garbage of a propaganda piece, I can only imagine that part is boiler-plate, and noone along the chain caught it or could be bothered with correcting it.
Trump is serving up the distmantling of most US soft powers. Like how is this not a game of chicken for us to bunch up on Ireland and tell them no more fucking around with appl and alphabet. I'd love nothing more than a third level bureaucrat tucked away in Strassbourg to calculate exactly how much societal and global harm these companies cause. We could shift that into dollars (somehow?), and make sure they pay that tax, or we start filtering their sites. I rarely believe restriction is the way to go, but nothing would really be lost here.
Yeah the whole trade deficit is bullshit, with GAFA it's the other way around.
But USA, why are we not buying your shitty cars or crappy food? One can wonder...
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He is saying that if the EU wants to do a trade war the USA will deliver.
And who here is innitiating the trade war?
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You’re right in how it works, except when you say nothing is stopping a country to sell elsewhere, demand/supply/market conditions do. They are probably selling to other countries as much as they can anyway, and still sell to the US as well. So when they can’t sell to the US, it won’t be easy for those companies to find other customers to take this volume. If they existed, they would have been sold to anyway.
Practical example.
I know this winery that usually exports nearly 95% of their production to the US. The owner spent a few decades there and made some contacts.
Last year, they had some problem with the american market and were forced to search for other venues.
They dropped their prices, opted to sell to our national market and did pretty much the same revenue they would have done exporting.
Exporting to the US is often the thirst for easy profit. Products that sell here for cents can be sold at a premium in the US, as it is the de facto luxury hungry market. Doesn't really matter if it good; if is it expensive, it means it's good.
Portugal mostly exports food goods to the US. I think cork, some clothing and shoes and some other items make up the basket, but in way lower quantities.
I've seen cheese and wine that are considered run of the mill here sold for ten times more in the US market. Which I consider theft.
This entire situation gets uglier the deeper we dig.
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Parts, sure, but they also still have separate foreign policy apart from trade. As seen in the American War on Afghanistan for example.
Afghanistan was pre-Lisbon Treaty. EU countries would have a hard time nowadays going "I'm joining this war no matter what you guys do". It could still happen, but there would be a lot more discussion between the institutions.
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Wasn't there something about the Epstein files we were all thinking about just before Trump spouted this new distraction?
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What a load of cringe.
And that second to last sentence is just the cherry on top of the pile of shit. Everybody is already severely disappointed.
By the way: Does anyoen know if it's even appropriate to call Von der Leyen "Her Excellency"? It sounds pretty weird to me.
Take a look at the beginning of the constitution of the EU, that looks wild
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OK, what shares is he and his folks buying... We should do the same. His Black mail worked last time, should work again!
I am amazed thtavit keeps working every time. At some point, the market will stop reacting to the taco blackmails
