Europe bends over for Trump. Promises to buy American weapons and accept 15% tarriff.
The deal includes $600bn (£446bn) of EU investments in the US, and the bloc will buy $750bn (£558bn) of US energy and also purchase American military equipment.
Mr Trump said: "I think it's great that we made a deal today instead of playing games and maybe not making a deal at all."
He said: "We are agreeing that the tariff... for automobiles and everything else will be a straight across tariff of 15%." However, the 15% baseline rate would not apply to steel and aluminium, for which a 50% tariff would stay in place.
https://news.sky.com/story/us-and-eu-agree-trade-deal-says-donald-trump-13402672Open linkView original on lemmy.ml182
Comments29
If you're looking for resistance to the US empire it isn't going to come from Europe.
I hate that you're correct
Europe didnt agree to a 15% tariff. Americans are paying the fucking tariff.
Europe agrees with Trump that Americans should pay the tariffs.
Europeans lose out on the profit. Thats what a tariff mainly does, divert the profits from the company to the government.
How so?
The price of the import remains constant, maybe jumps a bit, but the costs rise. That means less profits and the cost is paid to the seppo government, hence my comment about diverting profits from europe to the seppo government.
If a company isn't going to make a profit selling to America, they aren't going to sell it.
So the item the previously listed for $100 and made a $10 profit on, will now cost $115 for that same $10 profit. They won't all of a sudden drop the price by $15 to keep the sale price at $100 and then take a $5 loss on each sale, they will simply stop selling the item or Americans will need to pay $115 for the item and the government gets $15 and the company still gets $10, but it's still the Americans paying that $15 to the government, unless there is already a locally made item which sells for $105 then Americans will buy that instead and the European company can't compete anymore and will stop selling their product and Americans have less choice in the stores.
Thats why i said less profits and not no profits. If they could have sold it for $115 they would have. There might be some price gouging using the tariffs as an excuse but its not gonna be such an effect across the board i dont think.
What I was thinking of was an item with a >15% profit margin now being less but not necessarily unprofitable.
If there is no profit to be made then yeah all the previous profits will go into the hostile countrys private sector since the gap is gonna be closed by domestic companies which is what trump means when he says that tariffs will bring jobs back.
What does that mean?
Seppo = Septic Tank = Yank = American.
You are technically correct, but without any counter-tariffs Europe is practically paying the tariffs.
No they arent, usa customers are..
No one can actually stop Trump from imposing tariffs on his own country.
That's what counter tarrifs are for.
How long before the EU stops complaining about the Chinese EV boom just to spite trump? I mean christ that one is at least extremely transparent... god this guy is an idiot.
Our leaders are spineless... The US says jump and we jump it's pathetic. I really wish the people of Europe organized more and put up stronger resistance because our leaders will not do shit.
That would certainly help both sides of the Atlantic. We need to hurt for anything to change on our side.
It’s not just ideological or lack of authority, EU economy is deeply intertwined with US’s one: if your main ally turns his back on you, you’re in deep shit no matter what you do. I agree that harder times could be beneficial (other comment to yours), but try to survive Trumps legislation could also work. In my view, it’s the decades before this that prepared the field for trouble: both with Russia and USA, Europe has made itself too dependent on foreign countries (for energy and defense, core matters with regards to be strong on an international field)
"deeply intertwined" is a nice way of saying "owned by"
I think this is excessive, the concept of ownership is on another level. But I get what you mean.
The usa effectively controls our subcontinents economy via energy. We are all but outright forbidden to buy from other nations such as russia, see e.g. nordstream 2. They who can destroy a thing own that thing.
Europe has a pretty sizable car industry, that's why they're concerned about Chinese EV's.
So, Americans will pay a 15% tax, while not getting those manufacturing jobs.
and our misleaders ensured that we will not only lose out on profits but also pay for the privilege.
They didn’t say when lol
To be fair, the U.S. generally makes the best weapons.
Not really. Their price to performance ratio is usually terrible and the maintenance cost extremely high.
Uk have zero risk of getting attacked