What a sorry story. Many of the comments here reveal an ignorance about trade that is unrelieved by this detailed and informative report. International trade is complicated and it's global, which is why people work together, make plans and stick to their agreements. Trump is in over his head and his supporters too. Americans have been conned into electing a confidence man for president. He's a fake. The chickens will come home to roost. Hannity will lie about it, voters will believe him, but there are real business leaders who will understand what has happened and perhaps fix it. Meanwhile, we have these people who I assume read the article and are commenting below profundities like "you need us more than we need you!" It's depressing.
2
Sorry, Europe, but Demagogue Donald doesn't really care what you know or think.
His plan is to throw everything at the wall and later scrape off what Foxcasters say they don't like.
As reported elsewhere, "We'll see" is his catchphrase and the limits of his goal-setting.
He can't strategize on his own, and he doesn't have a staff that is capable of writing policy.
So it's more bluster and bait-and-switch in all our futures.
Sad!
3
Europe has been taking advantage of our generosity on trade And intentionally blocking American products from Europe for decades. They still think that the Marshall plan is in place. The pathetic list of American products that they’re going to raise tariffs on tells the whole story – Harley Davidson motorcycles, Kentucky whiskey, blue jeans.
2
all about different tuning “fair trade” issues by different administrations and ...international treatise consistency
Seeking "fair trade" is Trump's excuse to assert his bloated ego. His crude and obvious agenda is to make himself the arbiter of everyone's fate and have heads of state kowtow to him personally, regardless of the economic consequences.
If a Democrat was capriciously tampering with international commerce instead of letting market forces take their course, the cries of "socialism" from the GOP would be deafening. But Trump has no ideology. His driving force is the unquenchable ego of a malignant narcissist.
3
I really do not care what other countries think of us. Some of us accept, even enjoy, Europeans being anti-American, but if an American is anti anyone, they are instantly xenophobic or racist.
Trade is a complicated issue, and I don’t believe President Trump is making all this up as he goes, rather, there are various advisers and groups that have done analysis and given input. There is always a chance we won’t get this 100% right, but we need to start somewhere.
Parts of the world are furious because the US is finally pushing back and looking closely at our interests. I support this 100%, as I believe the US has given too much for too long.
I am repelled by opinions that mock the red states, and hope they suffer economic harm. We are all Americans, and gleefully hoping that ordinary citizens will pay a price for voting as they saw fit is just as horrible as what you proclaim to despise.
1
Come on EU, you can do better than just complain. Isn't it time to show all 5 fingers in this tit for tat exercise of diplomacy. I really thought you had more muscle. Your response should be: Our salacious, self-appointed 'genius' POTUS DTrump, wants to impose tariffs in the amount of (estimated) $400 million dollars, so take him to the outer rim and respond by say EU will impose tariffs for imported products from the U.S. immediately in the amount of $800 million the moment the salacious, self-appointed 'genius' POTUS DTrump enacts tariffs against imports of products from the EU. Simple and to the point: DT can not intimidate the EU. Let HIM know exactly what he is getting into. Thank you.
3
someone please explain to me how German or French steel can be more cost effective than steel produced in the US? Both countries are more social backed societies than the US. let alone the freight to get steel here, as we know it is heavy. We have ample iron ore and workers in this country. How is it protectionist to desire to process our own products using our people?
EU subsidized? won't be the first product. AND tell me how many cars the Germans accept from the US vs. the amount of German cars sent here, some and more planned from Mexico,. I don't recall Germany being a signatory to NAFTA. Emissions cheating anyone? Desiring to employ our workers processing our resources hardly seems protectionist.
Now, how big are the subsidies that communities and states offer to Amazon and Google? How much did Indiana and Indianapolis subsidize the United Airlines maintenance facility? And so on.... So, be careful about making blanket statements that other countries subsidize their industries (many do), while implying that the USA does not (we do as well).
6
Isn't this part of cat and mouse with the Iran deal coming up for renewal?
Canada too is about to get socked between the eyes - it's not just EU.
2
Trump's America First policy means the end of free rider enjoyed by many US global allies and friends since the end of WWII, including EU member countries.
The most important lesson is the US can no longer afford to pay up for global leadership as it did in the past.
As Winston Churchill once said to Britain's top military leadership in 1946: Gentlemen, We Have Run Out Of Money; Now We Have to Think
A new era in the US/EU bilateral relations has been initiated by Donald Trump. A man for himself and God Against All.
3
to uzi, great post. recall the actions the French and others regarding the Marshall act following WW2.....they were using proceeds from our generosity to demand gold from the US treasury. Nixon finally stopped that. The French and Germans have the most to lose in this trade realignment and the most to lose in Iran, when they flocked there pedaling wares to "Help" them produce oil, and sell Billion$ of new Airbus aircraft.
trade has to be balanced without politics. We have far too many folks no working and relying on the US Govt. for assistance. I am not talking the elderly or handicapped. I'm talking mostly the blue collar folks who have the most to gain from a more fair trade program, though the heads of US corporations might disagree, it's not their money propping up the underprivileged as they tend to escape taxation more than individuals.
1
Your "blue collars" -within a country with 4.1% unemployment- will be the first to pay the increased price of products coming from US tariffs, which will invariably reduce their purchasing power... Some people really don't have any clue on economical realities.
Trade war over steel? Enjoy paying 25% more on the steel content of any product made from steel just to subsidize with your money failing and noncompetitive industries.
Trade war with China? Gone are that cheap clothing and electronics, no more cheap smartphone and over-sized TV screen for your blue collars.
And so on.
1
... and with that you may artificially preserve a few tens thousands blue collar jobs downstream for as long as the tariffs/subsidies are kept but also kill hundreds of thousands if not millions of more qualified/higher margin jobs upstream, the ones using that steel to actually manufacture goods or build housing.
The "limbo" and unilaterally imposed business uncertainty are clearly part of the concerted effort to undo the US-built rules-based trading system, to push trading partners away from that system's pillars of predictability and equal treatment, and to force a world in which the US makes special, changing unreliable deals on a one-on-one basis. It is very difficult to avoid thinking that Russia must be gleeful to see friction and discord resurface among the western trading nations.
3
Another one with his "Russia", that's Pavlovian -pun intended- by now: of course: "Russia" and "Putin" must be delighted by the upcoming tariffs on their steel export to the US... What a clownish and delusional fixation, the daily mass indoctrination about that remote bogeyman seems to be working on so many tools.
Uncertainty stalls business planning. This is what the Republicans used against President Obama by obstructing his initiatives. Now, Trump and the Republicans are doing to Europe by creating uncertainty. Alas, the joke may be on them considering it is a global economy whether they like it or not. Airbus is going to get more business from China. And Europe and Asia are going to import less American goods now that the goods are costlier and the supply chain less reliable.
Trump Does what Trump has always done as a "business man":
He is playing chicken.
In his business ventures that kind of game usually led to bankruptcy and had to be solved by banks and other lenders, stepping in and keep the business ventures of Trump from failing.
In this case Trump does not use a construction project but an entire country for his game.
And he will fail again, like he usually does, as he does not understand global trade.
The US is not in the same seat of power it used to be.
The European Union these days has more economic power than the US.
China is rapidly overtaking the US as well, closely followed by a number of developing economic zones like India or the Merco Sur.
And that means that all of these economic zones will not bow under Trump's bluff, as this is all it is.
If China stops buying US bonds and if the rest of the world simply does not sell all those goods the US cannot produce any more, like high quality steel, electronics or drugs, to the US for a while, the US will be harmed much more than the rest of us.
So in real life, it is not the US who can put demands to others, but the other way around.
The US needs global trade and production and if they play the same chicken game, Trump has been playing at home, the US will have to learn that is has been put on hold for a while, while the rest of the world simply continues to prosper.
Trump is steering his country over a cliff and nothing else.
He can't win, he has never won before.
9
Well said. I would add that Trump and George W. Are both fakes...both were full of bluster and no real ability and substance. Georgie boy bankrupted four businesses, then the country. I imagine this won't end well either, unless we can get rid of this psycho.
2
America's old friends and allies have been amazingly courteous and patient as we shot ourselves in the foot and then solicited spare change for the performance.
Thank you all. We are so sorry.
10
Trump doesn't join. he divides. always. and he is a bully. which in effect means he is a coward. EU should just levy it's retaliatory tarrifs until Trump retreats. he only understands one language: strength. if confronted with it, like any bully, he will tuck in his small - ah hands - and retreat.
6
There is no need to get involved in a race to the bottom.
That is one idea that world leaders seem to have forgotten.
By allowing Trump to employ a divisive approach, and fighting to work out deals for themselves, they are behaving like working girls on a cold night. Offer more for less. And more for less... .. .
If instead world leaders stuck to WTO rules and make a united stand, they would call Trump's bluff. Just as Trump found, the EU will negotiate as a block.
United you stand, divided you sell.
7
Indeed, the EU should just tell the US bully that their retaliatory tariffs on American products are just delayed by one month.
6
sensi, please elaborate on the goods from the EU that will cause us to suffer.....French wine? high end German cars? Swiss chocolates? German elevators? emissions cheating VWs?, ...BMW motorcycles? yes it would hurt, for a while. FYI we buy far more military products from them than they do the US.
@ Bill
What are you speaking about?
Trump wants to put tariffs on steel, the EU wants to retaliate with tariffs on US products coming from US states supporting Trump: enjoy.
What " military products" are the US buying from the EU? The only open tender they made that I can remember and which was won by an EU company (Airbus over that military tankers tender) ended up hijacked and killed by US politicians lobbying for US companies (the very ones who bribed US officials to "win" the previous tender), and those surely don't want any "free trade" and any "fair completion" in spite of the year long litany of lies feigning so.
I would not be so hard on this White House.
This POTUS has been using this word "reciprocal" since he started campaigning.
No one took his campaign seriously and definitely not his "America First" policies.
Here we are 15 plus months later and the man has not changed his tune.
So, who should really be more irritated. The Congress has given him powers under section 303 (I could be wrong on the exact section) to take unilateral decisions on trade in best interests (in his opinion) of America.
So, it is really the White House who should be irritated that the EU does not fall in line. Heck, they went all the way to Mexico to sign a trade pact. If they can do it with Mexico, this administration has every right that EU consider it's position rather than just complain about it.
4
I didn’t think Europeans were capable of anger, so bourgeois that only crude Americans could allow themselves to sink to.
I am 65. I worked at Ford to pay for collage. I will never buy another American car. Never.
8
Of course they are annoyed. What has been termed by some as Trump’s role as a disrupter, as his having a policy of being unpredictable, is no more than simple minded way of approaching life. How do a person get what they want? You assault accepted norms of behavior and morals. You make yourself the center of everything. You threaten, bully and ridicule with the hope your adversary will give in. If this fails, you walk away, declare bankruptcy or stiff those you owe. This is the policy Trump is applying the the tariff question. It is all about him, keeping himself at the center of everything for as long as possible. If it falls apart, he will will blame someone else. He never has any of his equity in the game; he always plays with other’s capital.
8
Spot on. A narcissist is a VERY dangerous, destructive person. I have first hand experience.
1
This President has no grand plan to address global trade issues; that would require planning, deliberation and careful study. He is simply enjoying his favorite impetuous practice of disrupting the norm and established policy, especially as it pertains to the practices of the previous administration. It is all a narcissistic game of wielding the enormous power he has found himself possessing as the President, and which he loves, in order to watch the startled reactions of democrats, world leaders and the media - he finds this all amusing and entertaining. We are all being held captive by these foolhardy practices. The 2020 election cannot come fast enough!
11
Trump clearly is playing the "I'm the boss" game and Europe is accepting it. They come across as weak and scared - not very smart.
4
Nope. Thays com across as appalled and resolute not to descend to the low level of school-yard bully that is Trumps only trope. The US is in danger of being left behind.
1
What would you say and do when one of your partners tries to boycott all your efforts on behalf of peace? A fifth columnist bullying his way to destroy what you built, as vulgar Trump seems intent in doing?
2
A word of advise to Democrats: if you ever wish to win a presidential race again, you have to let the American people know you would rather annoy the French and the Germans than annoy them. This is difficult for many Democrats who hold French and German societies in higher esteem than their own. It is why you are losing elections.
5
Maybe that's because French and German societies take better care of their citizens?
11
I hold Europe in much higher esteem than the United States which I hold in utmost contempt and a profound sense of shame.
14
thank you for proving my point.
EU, welcome to our nightmare.
9
The EU should call Trump-Pence bluff and reduce the tariff on US vehicles. Upon doing so, sales of US vehicles in the EU will remain flat because of size, fuel consumption (EU has nearly 100% tax on fuel) and general poor reliability.
6
Trump , the criminal is picking a fight with Europe , doing Putins bidding to destroy alliances. China, the maker of his corrupt daughters uninspired schmatta line is the real enemy but one Putin foe at a time to deal with. Trump trash world is careening wildly about to burst into flames like Richard Pryor , and we shall all be better off watching the show.
5
Trump is wrong about so many things it's impossible to keep track. That being said, he is not wrong to expect Germany to live up to their nato obligations and to tax our products fairly. Knee jerk anti trump views are not always correct
5
Sorry but his erratic behavior has trained us to do so.
It's like pavlov's dog , he speaks . we cringe.
4
As they should be. They know, we know, they are being played. When will Trump, the Bankrupt King, understand that he knows nothing. Macron, Merkel, and May far surpass him in intelligence, political savvy, ethics, and experience. I hope they continue to stand strong against the ulterior motives and whims re everything Trump. I am embarrassed for our country.
16
How can he expect to sell more cars in Europe,when he is rolling back emission standards. It's as if the left hand knows not what the right is doing. Is he going to force them to roll back their standards?
18
G White.....how soon you forget the emissions scandal on EVERY VW, Audi, and Benz sold here until it was discovered by a university playing with their new emissions tester.
then again, your country devised the soft timber subsidized scandal. tell me how soft timber on a truck in AZ I saw last year is profitable?
I didn't think so
Well, we have a grifter, con artist, stiffer of his contractors, suppliers and possibly employees, a king of bankruptcy and issuer of junk bonds to finance his failed casinos basically in charge of our economic system and imports.
What else could we ask for?
We are winning and we have the best business mind and negotiator serving as president. Just kidding.
3
Hey, trump tells it like it is - except when he doesn't.
2
What does Putin want? Instability and uncertainty in the West. What does Trump deliver? Instability and uncertainty in the West. Trump is doing just fine as Putin's agent.
14
IRL "Putin [certainly doesn't] want" tariffs on Russia steel exports to the US, hence why they have sued the US in the WTO. Clownish.
The EU is annoyed? I have a suggestion: they can stuff it. Except for the UK, Poland Greece and one other small country, NOT one of the major EU countries have contributed their required NATO contribution of 2% of their GDP. Germany pays 1.2%; Italy 1.1%; So not only do they demand that we pay for the privilege of defending them, but they want us to subsidize their industry as well. Germany rebates 24% VAT to exporters, but we can't rebate corporate taxes.
6
You obviously have no idea about what these 2% are, as they are not any "required NATO contribution", let's nonetheless humor your nonsensical digression (years old quotes but still relevant):
"The 2 percent [of GDP in military spending on your own forces] standard is just a guideline, not a legally binding requirement."
https://www.nytimes.com/2017/05/26/world/europe/nato-trump-spending.html
"The U.S. share [in the NATO budget] is calculated on the basis of gross national income — the total domestic and foreign output claimed by residents of a country — and adjusted regularly. Currently that would be about 22 percent, compared to about 15 percent for Germany, 11 percent for France, 10 percent for the United Kingdom, 8 percent for Italy, 7 percent for Canada, and so forth. (...)
Daalder, however, notes that mismatch in overall defense spending occurs in large part because the U.S. military projects its might across the globe. “Our proportion includes spending for our entire military, which of course has global responsibilities [sic, will to meddle everywhere], whereas Luxembourg does not,” he said."
https://www.washingtonpost.com/news/fact-checker/wp/2016/03/30/trumps-cl...
4
According to NATO’s own figures, just 5 of the 28 alliance members meet the requirement agreed upon in 2006 that members spend at least 2 percent of their GDP on defense. http://time.com/4680885/nato-defense-spending-budget-trump/ That commitment is good enough for me. Pick as you wish but the central points I made are correct.
3
What was your "central points" again while digressing toward irrelevant spending over their own armed forces and misrepresenting these 2% as any US "pay[ing] for the privilege of defending them" [sic], that now debunked lie? Crickets.
1
I wish someone would put a high tariff on his hair growth medication. got to fight fire with fire. Hey Europe, be grateful you only half to be annoyed by trump, every night America goes to bed with this unqualified, liar, owner of fake news, etc, in charge. As Tom Bodett of (Motel 6) use to say we will leave the lights on for you. In trumps case there are no lights burning.
6
Shunning, tough love, is called for. The rest of the world needs to tell us to take a hike until we clean house. Yo, you guys: Freeze us out. Set up your own trade agreements. Trade with Iran to support the moderates there. It'll hurt for a while but help in the long term.
10
Bussiness decisions need predictable even flow and routine.
There is a ton of whipsawing going on with shipments and pricing. Who gets knocked out?
The little guy with a dream who cant handle the hit.
Like the Donald when his Dad bought 1M in chips and went home.
1
Europe is annoyed with Trump? Get in line.
10
Does Donald J. Trump, billionaire wannabe, ever feel the need to save face? Or does he always try to brazen out his mistakes? I hope this is a stall, giving time to Trump's advisers to figure out how to pry his little hands away from this stupid protectionist trade war tarball he's been clutching.
2
I wonder if it’s finally dawned on Trump that simultaneous trade wars with Europe and China might just decimate his base ....
But then there’s no way of walking back from all his threats and bravado without loosing face ....
Or maybe the man’s just too stupid to realise what the heck is going on ....
7
Vladimir Putin must be laughing out loud over how he was able to manipulate the 2016 American election to make sure that Hillary Clinton would not become POTUS. For this Trump will be forever grateful. Putin achieved his goal. The strong bond between America and the EU as well as between America and many East Asian Countries has been severely weakened. Trump is bad for Europe and bad for America. Only his deplorable supporters are too naive to see how he is destroying the American economy and will definitely not make America Great again. Trump the failed, i.e. bankrupt, businessman will bankrupt the American economy just as he did his own businesses, SAD!
9
All eyes must always be on the Donald. This is how he has treated people his whole life - keeping them waiting, guessing and insecure in order to artificially stroke his own ego - now he is treating the world that way. No surprise here in the least.
8
The bureaucrat in Brussels might be annoyed, but they use every opportunity to puff up their importance. What counts are words from Merkel and Macron. So far none.
Numbers (From LeMonde) on the impact of the proposed tariffs
"The direct impact alone will be limited," says Gregory Daco at Oxford Economics in New York. In 2017, the European Union (EU) exported $ 5.3 billion (€ 4.3 billion) worth of steel and $ 1.3 billion worth of aluminum to the United States. Potential losses for the EU are estimated at between $ 2 billion and $ 2.5 billion. "A drop of water compared to the $ 23 trillion annual global trade," reassured Patrick Artus at Natixis.
According to Gilles Moëc, an economist at Bank of America the (proposed) taxes could cost 0.04% of gross domestic product (GDP) to the German economy, the most exposed in Europe - it accounts for 3.8% of US steel imports . The cost would also be 0.04% of GDP for the Chinese economy (2.2% of steel imports). In both cases, the width of a line.
http://www.lemonde.fr/economie/article/2018/03/10/commerce-l-impact-limi...
As I posted below, the real fight is about the automotive trade.
2
"What counts are words from Merkel and Macron. So far none."
IRL: "Merkel says EU ready to hit back over Trump's tariffs, after talks with Macron and May"
https://www.independent.co.uk/news/world/europe/angela-merkel-says-eu-wi...
1
woof, are you referring the "German" cars coming from (tax free) Mexico? that will be handled in NAFTA
different trade imbalance
I dare to think that many German cars for the North American market are actually made in the US, and among them many which end up exported abroad from there.
I might be guessing, but it's a guess based on observation of the Trump administration: I doubt that the US negotiators know what to demand, specifically, in return for a permanent lifting of the tariffs.
I'm pretty sure that the US negotiators have no idea what Trump will accept, and have no ability to give their EU counterparts a firm offer. In those sorts of situations, the EU couldn't surrender even if it wanted to.
In that scenario, extending the threat another 30 days isn't for the benefit of the EU, who sees it as another 30 days of being Trump's punching bag; it's for the benefit of the US team, who can't close a deal until they are sure Trump is not going to give them the Nikki Haley treatment.
7
America is a very open economy and this is evidenced by the fact that duties on autos are only 2.5% versus the 10% the EU charges. The EU could lower the duty on autos as a measure of goodwill but I think their hesitation is that per WTO rules they would have to offer that to all including China. I'm not sure what tariff rate the new EU-Japan free trade deal will place on cars but my guess is that it wont be much lower than 10%.
2
Last November, China signed a deal to buy 300 aircraft from Boeing, America's largest single corporate exporter, valued at $38 Bn (Yeah, I know, it wasn't exactly a "new" deal when DJT stole the headlines). Late last year, as Trump's protectionist rhetoric was heating up, American business analysts confidently scoffed at the idea that China would retaliate against Boeing because, as they put it, the planes were "too valuable for China's growing economy" and there were no other alternatives.
Today, many of those analysts pause before they address this sensitive issue. For their part, Boeing executives are awfully quiet on the subject. While the likelihood of China cancelling the orders is slim - "the nuclear option," as one analyst wrote - the reality is that China can seek many other ways of making Boeing's life very difficult: devaluing the Yuan, altering regulatory oversight, leveraging aircraft suppliers, seeking concessions down the road, targeting specific classes of aircraft (like the mid-market plane), among other possibilities.
If China was looking for an effective way of driving down the cost of these planes, it just found it.
3
Tariffs, especially on steel, are mandatory for the success of US infrastructure spending since steel will be a major purchase. Without protective tariffs the money (and jobs) will flow offshore because of cheap labor and less environmental regulation among other things.
3
This just shows that the Europeans do not understand our great negotiator.
2
The words 'great negotiator' should be put in double quote...... "great negotiator".
2
"Negotiating" with trump is like enabling an alcoholic, or like having an adult conversation with a toddler: Unstable, unreliable, and prone to fits of temper.
22
Each of these steps isolates us further and further from the rest of the world. Soon, it will just be us and our authoritarian for-life leader Trump and his submissive GOP party. Perhaps it is time to start to look for a better place to live--outside America.
15
Germany is a nice place to raise a family.
2
Thank you. I've got all options on the table.
The EU should just ignore Trump, the middleman, and negotiate directly with Fox and Friends.
7
A retaliatory move on Bond villain Murdoch's faux news can be interesting, thwarting its will to buy Sky news as a matter of example.
The headline of this story should read, "Unqualified, Incompetent President Undermines Decades of Close Alliance With Europe."
So great to have a narcissistic ignoramus and his host of sycophants piloting the world's largest economy.
Tired of all this winning yet?
10
I'm worried that my Christian Louboutin shoes and other items that are much cheaper in Chicago will suddenly go way up in price...I can't believe the president would do that to me.
3
Hard people, with knowledge and facts, are sick of trump. I'm sick and tired of trump.
5
It is very frustrating to witness the Trump administration deliberately undermining good business practices with our friends on the other side of the pond. Threats and delays are now the hallmark of Trump cronies and for no good reason whatsoever will undermine the global economy. Of course the US will be first and foremost in suffering from these idiotic policies.
2
I think this is just a diversion from trump to kick his troubles off the NY times front page and it bothers him none that he takes down half the world because he can.
1
Anyone who has ever had to live with a narcissist understands what is going on with the tariffs, the Iran nuclear deal, etc. A narcissist needs to have people waiting for him, and him alone to decide an issue. The only way to defeat a narcissist is to disengage entirely. With former narcissist spouses, it is the No Contact rule. It takes time for people who live with narcissists to understand the power dynamics. Once the world realizes the dynamics, the world will disengage and the US, and our narcissist leader, will no longer be welcome as part of the world family.
23
Surely, Trump enjoys having people wait for his decision; he enjoys making his decision more important by brinkmanship; he enjoys having the TV coverage of each cliffhanger and having you stayed tuned for the next installment.
On the other hand, why would he ever conclude a deal? That simply gives some other doofus the opportunity to do what he does.....claim that he can do better. That's why everything that Trump actually signs off on, he then backtracks on rhetorically: the South Korea trade deal, the budget deal in congress, the House bill repealing the ACA.
3
I've read posts here that indicate some people actually delude themselves by thinking this represents some kind of strategy on Trump's part. These are touching , but ultimately failed attempts to provide cover for Trump's newest blatant demonstration of indecisiveness and seesaw reacting to whatever the next person tells him about any given issue.
10
LeMonde, France's leading newspaper, analysis is that the fight is NOT about steel or Aluminum but about cars, and in particular about the German Auto Industry's exports to the US.
Trade numbers back that up
As to exports of autos from the Eu to the US and vice versa
US duty on cars imported from the EU to the US is 2.5%
EU duty on cars imported from the US to the EU is 10%
9
so why doesn't Trump negotiate the car tariff deal instead of steel/aluminum?
4
You would have to ask the Donald ;-0
More on automotive trade between the US and the EU at:
https://www.cnbc.com/2018/03/05/trumps-tariff-threat-on-european-cars-co...
1
Care to share your sources for your duty claims? Ty in advance.
There goes Crazy Donald Trump again, undermining global business and trade on a whim!
3
It's not a whim--it is completely planned. He has to do this stuff so his base thinks he is the tough guy the wanted in the WH. When he exempts practically everyone they don't air that info on FOX so the trump base thinks he is still their hero.
2
Why on earth should we Europeans be grateful for Trump's indecision? Stop dithering and make up your mind.
Until then we'll treat Trump with the contempt his behaviour deserves.
53
Our President is a tariff on sanity.
8
Well, duh.
Europe hasn't been the subject of a trade war in, let's see, decades. The threatened tariffs have done nothing but waste the time of the EU leaders and get everyone in the EU in a tizzy. Obviously, the EU leaders are no fools, and if anyone in the WH had been paying attention and could reason their way from square one, they would know that if the tariffs were imposed on EU goods, the EU was going to file suit at the WTO, and win -- or if the EU didn't win, they would retaliate.
Trump has done the EU absolutely no favors. From the EU perspective, this has been a pointless fire drill. For the rest of us who understand what's behind Trump's threats, we know he's just throwing red meat to his ill-informed base.
Anyone who thinks the non-exempt countries won't retaliate should think again. I'm looking forward to China sticking it specifically to Red State voters who are trying to sell their goods in that country. Let's see if they think Trump is the savior they thought he was going to be when that happens.
Oops, now that I think about it, Red State voters are so clueless that when China retaliates, and Trump manages to blame it all on Obama, they'll believe him.
30
Dear Europe- welcome to our nightmare.
16
President Trump
Doesn't
Understand
Multi-country
Business
3
"The White House wants to reduce what it maintains is the United States’ trade deficit with the 28-member European Union and is seeking concessions, such as lower tariffs on American cars sold here."
I suppose the President is unaware that American car companies like Ford MAKE A LOT OF CARS in the EU as the European market is different to the US market. Try driving a large SUV or truck in cities like Avignon...it will get stuck!
So a trade war is on the horizon over zero knowledge of the European car market......urm....I think the current WH Chief of Staff is correct in his assessment!
4
Several Buicks come Germany. A couple of Buicks and a Cadillac come from China.
Not grateful? That means trouble.
2
American media has become so worn out on Trump stories that they report them as if they are normal.
They are not.
Europe and Canada and I'm sure others are furious at this ridiculous bully treatment by a country they have deeply enmeshed their economies with and used to consider a partner. It's an insult and should not be washed under all of the other insults.
27
“we will not negotiate under threat.”
But that is all the Donald knows, pressure and chaos, a one winner real estate or nda. Absolutely no surprise he seems totally unable to bring the Germans, Brits, Canadians, Japanese, Mexico into a commonsense approach.
Protecting growth industries like IT, services,
smoothing trade to increase flow and efficiency,
Protecting technology.
FORCING China to constructively discuss and change its trade rules
You do not win 5his as a 1 man superhero show, you choose your fights,recruit allies and cajole and threaten your way to compromise and improvement.
Donnie is stuck in the 70,s Japan is something he remembers from Wharton and headlines BAD!!
The upheavel he threatens with the silly dithering on the steel and aluminum tariff, which is illegal most likely, is stupid and silly. (Purely driven by the Penn. special election that he lost.). Honestly he is clearly out of his depth, keeps looking at one winner at a time, steel yesterday, Soy beans next week.
Every deal seems to be compartmentalized alone, while reality is you need to deal with a lot of nuance and multiple pressures AT ONE TIME. Donnie has no skill at this, he does one hotel, one golf course at a time. Cant work that way, toooo many players, tooo many issues needing a balance.
7
The only reason Trump is attacking our European allies is that HIS ally is Russia, which wants to split the EU/US relationship. No one else benefits from this. Trump is a clear and present danger to this country, in addition to being a racist con man. November cannot come soon enough.
13
Wait, so now we have to make sure not to annoy European elites? Please.
3
This is sloppy madness-what if the EU sought 'bilateral' deals with individual american states? How does this end?
BTW: how is it that the EU and Canada use unfair trade practices yet provide universal health insurance and generous benefits and higher wages to their workers-clearly the US should have the advantage...please explain. Sounds like the US is the unfair competitior yet can't seem to compete.
17
Grow up, folks. Of COURSE Europe is "annoyed" at Trump over his brinkmanship. He's not interested in tariffs - that's simply his leverage to get them to the table to re-negotiate GENERAL bilateral trade agreements. They're concerned bout the complex web of protections they offer their OWN people, including agricultural producers but more, as well. These are extremely politically-sensitive protections there.
But Trump made no secret of his intentions to do just this, indeed ran in part on this promise. He's seeking to protect legitimate American interests, and we should support him in this.
His brinkmanship seeks to put Europe between a rock and a hard place to shake loose concessions. No wonder they're "annoyed".
6
If this is just brinkmanship, i.e. if we are just bluffing, you just gave the game away. Thanks a lot.
The biggest problem, however, is that he's favoring certain domestic industries over others. Steel and aluminum production is favored over automobile, heavy equipment, and aircraft production. And the mere threat of tariffs raises costs for those industries.
What's most laughable is the notion that Trump knows what he's doing in this arena.
32
Justin:
I'm a pretty self-confident guy, but I RATHER think that I'm NOT letting any cats out of bags. The Euros know precisely what's going on. However, apparently YOU don't.
As of now, no oxen have been gored, and Trump is playing a long-game with bilateral trade agreements.
1
Yeah yeah. He's a genius. Smartest man who ever lived. Very high IQ. No issues with his thought process. Going to live to 200. Wrote the Art of the Deal all by himself. Playing six-dimensional chess here. Brilliant negotiator.
4
I can imagine that American business are greatly annoyed with Trumps game-playing manipulations as well.
24
The concept of "friends" doesn't concern Trump unless it's friends whom he can exploit personally, such as tabloid news or Fox & Friends. How many loans did he get from European banks in the past, as opposed to Russian oligarchs? How many Trump Hotels are there? (One in Ireland, and a golf resort in Scotland)
It's all about Trump. So what if our allies are treated like enemies, and our enemies such as Putin are treated as friends? Trump has made his opinion of the continent of Africa clear, and has dismissed all Latino countries in the same way. He does have a fondness for authoritarian regimes.
He regards Belgium as a beautiful city, and would be happy to accept white immigrants from Norway. That Friday attack in Sweden that the Swedish were unaware skews his perception of that country. He said that "the Germans were bad, very bad ... Look at the millions of cars in the US. Terrible." He thinks his quotes from Mussolini are interesting. Trump said that the French first lady is in "very good shape" and that Macon "loves" holding his hand. When Greece's debt crisis was bad in 2015, Trump said that if Germany didn't help out, "Putin probably comes in to save the day."
With this Trumpian view of the Continent, Europeans may want to build their own wall.
36
“Europe Is Annoyed…” Wow, the entire continent is annoyed.
“American allies did not bother to conceal their annoyance”, but they’re also apparently annoyed at their own EU member leaders in Germany and France too.
And neither the spokeswoman for the German government nor its economics minister sounded “annoyed”; they sounded rather reasonable, in fact.
It actually sounds like there’s a circular firing squad underway over there.
“the European Union’s cautious, often ponderous approach to policymaking” is antithetical to the new realities of the 21st century. The EU simply will not survive if it doesn’t adapt.
“European Commission prizes deliberation and procedure”. See: EU, above.
And “Some German business groups”--who are presumably “allies”--don’t seem annoyed at all, and in fact seem to recognize that the current structure of the trading system with the US is deficient, and are going against the wishes of their fellow citizens to improve it even after the issue became “moribund” during Obama’s term.
“a contention disputed by economists.” All economists, or just two or three? Sounds like all?
“secretly, some European leaders are happy that Mr. Trump has challenged China”
The EU represents more than half a billion people. Why does it need to hide behind America’s skirt to confront China, if it feels it needs to?
Why do “leaders” insist their position about trade, which is such an important issue that it has the entire continent “annoyed”, be kept a secret?
How are you going to make Europeans buy things that they don't want??
If Americans really care about the trade deficit, they can buy less stuff made elsewhere.
35
Or they could start making things that everyone else wants to buy.
17
Unfortunately, my assessment is that Trump sees all of this as a game. Threats that are answered with general praise for Trump get nullified and when the praise doesn’t come the threat is left hanging. I guess this behavior actually works in the world of real estate development. He hasn’t got a clue and that is the larger problem. Clearly he want praise from the leaders of other nations and he wants something from Congress. In the end it’s all about Trump and his personal foibles. But the voters got what they asked for and will have to live with the consequences.
27
The only way to "fix" the trade deficit is to convince Americans to stop buying foreign goods, LOL. Or get Americans to work for lower wages, so American workers can make and sell goods at competitive prices on the shelves of Walmart. Trump's tariffs are useless in this regard. the bottom line is that we have a trade deficit because are prosperous enough to shop the world.
22
Americans should save more money and consume less. That is the real cause of all its trade deficits.
But why is a trade deficit bad? That is the real question..
5
You left out getting foreign governments to stop subsidizing their companies and then dumping products in the US below cost.
2
Manufacturing workers in several European countries have higher wages than their American counterparts, without creating massive trade deficits. It is daft to adapt by lowering salaries; there are always poor people around the world who can work for less. You adapt by increasing investments in worker training and technology. German and Swedish workers have high standards of living because they are highly skilled and add value to the export products they help produce.
2
Trade is a complex amalgam of price points, long term relationships, and interlocking technical partnerships. To bring into this reality such political bombast and ignorance, is a recipe for economic weakness and uncertainty, not strength. Smoot-Hawley was a contributing factor to the Great Depression. We don't need any such repeat, this time driven by a con-man demagogue.
39
Yep, negotiating under threat is actually not "negotiating". It can be called many things, but, I would suggest "capitulating" is the most precise.
16
The UK of my father's time didn't capitulate to a fascist leader.
The UK of my time isn't about change that.
1
...dear Europe, trump is using his standard 'bullying and bluff' technique to extract concessions. Apply your own targeted tariffs now and continue with business, while relying more heavily on non-US partners.
75
My suggestion to the EU leadership is to stop threatening and start retaliating. Trump is no Damocles and the Sword remains over the EU only as long as the EU plays Trump's childish game.
If the EU wants to help Americans who still cherish our alliances with Europe and help itself, then the EU should call the amateur's bluff and demand to see his cards. Pair of deuces at best, I wager.
99
Hope you are satisfied with your relationships. I believe most of us have a preference for jobs for our kids and grandkids that would be provided by protective tariffs.
1
We understand your frustration, European friends and allies.
We are working on the situation.
The vast majority of Americans are also annoyed at Donald The Menace.
We consider the events of November 8 2016 to be a freakish electoral accident, although in truth it was years in the idiotic making.
The majority of Americans are not so stupid as to have elected a Moron-In-Chief, but Americans are unusually apathetic and clueless about the meaning of government.
Fortunately, the Moron-In-Chief has cured that apathy and cluelessness and Americans having woken from their civic slumber.
We'll take care of this admittedly wretched Republican debacle.
Best wishes...hang in there for a bit more...and keep speaking out about America's Special Education President.
90
Trump's threats and intimidation seem to be working, but we'll see the outcome over the next several months to a year. That's not the way I'd like to see economic negotiations handled, but if that approach works out, and you are intellectually honest, you have to give President Comb-over credit.
3
Memories in Europe are long and tides turn. What is the value of signing any agreement with the U.S.? Be it with Mexico or Canada, the EU, North and/or South Korea or any other single nation state when Trump has made it clear agreements are meant to be broken or abrogated. He'll no sooner sign an agreement that he'll turn around and slap punitive tariffs on the counterpart. This is government by fiat, directed only by the emotional whims of an idiot and enabled by a craven legislature.
16
John Betonte: "you have to give President Comb-over credit." Credit for what, Mr. Betonte? For making Americans even more hated around the world than they have been since at least the Bush II administration? For making a mockery of our country and government? You are seriously saying that "Trump's threats and intimidation" are okay "if that approach works out?"
As an American living in Germany for almost 4 decades, I can tell you that I have encountered a good bit of anti-Americanism over the years. And I always felt obliged to counter those sentiments, either in words or simply by the way I behave and engage with others. I and countless other expats are essentially unofficial ambassadors for our country, trying to show people that the "ugly American" stereotype does not apply to the majority of Americans.
Now, in the age of Trump, this has become almost impossible. Sad to see people like you actually applauding, or at least accepting Trump's despicable behavior.
11
Amateur observations from an American temporarily in Europe:
Having watched on German television various leaders talking about what do I get the impression that they would like to believe is rationale and can be reasoned with. The Democrats and most everyone else, Republican included, realize that that is wishful thinking. It's negotiating with Jello.
Meanwhile, that Trump would be anxious to create a trade war with Europe is hard to fathom. German television is largely American movies and shows, German fast food is McDonalds, German goods are sold and delivered by Amazon, and on-and-on.
23
According to Trump, all good except that last item. he wants American goods to be sold and delivered by Amazon. One problem: many of our factories have folded because goods can be made more cheaply elsewhere.
5
Autarky is what Fascists always advocate, including that Austrian corporal who became German chancellor in 1933. One need only ask how it worked out for them...