I say this because I honestly feel like the EU might appease trump in order to make sure escalation does not happen, and in theory, I would normally agree, but Trump and his administration will just look at the EU as weak and lacking of resolve and unity ultimately. So. I'm wondering is the EU possibly about to buckle? After talking a big game?
https://www.reuters.com/world/europe/eu-prioritises-talks-with-us-get-trumps-tariffs-removed-2025-04-07/
Posted by jastop94
13 comments
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Aren’t they just offering the same deal they offered during Trump’s last term, which he refused in the end? It’s been their stance for the last decade rather than a new response to tariffs.
They’re offering the same deal as they did in the past, several times. That way Trump can’t call his tariffs “reciprocal”. And when he says no, they can say that they tried being reasonable by the US won’t so they have every reason to retaliate.
No, they aren’t. They offered the same deal that they have been offering years before, and one that nominally addresses all of Trump’s pretend concerns. It is not a cave in, it is something that the EU itself has wanted for years because EU manufacturing kind of outcompetes US manufacturing. He will of course refuse, and they will keep bleating on about Europe having to abolish VAT or something deranged like that. and the EU will go ahead with the next series of retaliatory measures that it is currently planning. This offer is also an internal EU signal towards more US-friendly governments (like Italy) that the EU wold really like to make a sane deal with the US, but alas the US is not a sane actor at the moment, so retaliation it is.
It would be smart to mollify Trump with some carrot in the short-term, and then quietly work to decouple from the US, Build defences etc. After all, these things do take time.
I’m guessing that they hope Trump will be desperate enough to take it with the stock market crashing, but this would be a win for the EU and definitely not appeasement.
Reduce taxes and regulations on digital services, agriculture, etc and that would be appeasement
>he (EU) had offered “zero-for-zero” tariffs for cars and other industrial products
Honestly, if this goes through (I dont expect it to, this administration truly loathes Europe), its frankly more beneficial for Europe; the average tariff (on both sides) currently are like 2%, Trump’s chart wasn’t exactly true to reality. 0% isnt that big of a change for either side, nor will it make Europeans buy F350 Superduty brodozers. Not to mention lowering the tariff to 0% would benefit EU that really WANTS to export more to the US, being more of an export economy and all. If anything, this would be EU trying to “screw” over the US.
More likely though, Trump will demand Europe drop VAT, or give him Greenland, or sanction Ukraine or something for him to remove tariff hike on EU.
The EU has been willing to make a free trade deal with the United States for a long time, it was Trump who halted negotiations for the TTIP.
They aren’t submitting to anything because it’s been their stated policy goal for more than a decade.
Well the EI is signaling that it wants to talk this out, but I think it is highly unlikely they will submit. Submitting to the US here would be political suicide with overwhelming public support behind retaliatory measures.
I would also think the EU may have expect tariffs in a more economically conventional way rather than this blanket tariff on everything.
Ultimately I think the EU knows that this escalating into a larger trade war will be very painful and tries to avoid that.
I don’t see much reason to believe the EU will fold though. Just because the EU isn’t as hostile as china to the US doesn’t mean it won’t strike
Just be honest if you are going to be submissive and drop all pretense about moral high ground.
/shrug
No, the EU is pursuing negotiations in hopes of avoiding a full on trade war. I get that people want a stronger response, hell so would I honestly. But the reality is that the American market is a very important one for EU exports, and a trade war would with near certainty end with billions, if not trillions of euros lost and god know how many jobs. That isn’t something that should just be dismissed.
But as the EU Trade Commissioner said in the article, the EU probably won’t just sit and wait forever for the US to come to the negotiation table. If the Trump administration decides to double down on the tariffs, which seems likely so far, then there will likely be harsher responses.
I just hope the EU actually sticks to that and don’t end up just sitting around and waiting in hopes of the Democrats to come and walk back all this stuff.
No. They expect this offer to be refused, and something unacceptable like removing VAT to be asked.
Doing this first step shows currently pro-US governments, like Italy, that it is impossible to negotiate a reasonable deal with the US, and they are going to have to support strong retaliation later.
The USA is the world’s largest importing nation.
Germany makes it living exporting things.
I think on the balance the USA is in a better bargaining position as opposed to most of Europe.
The USA’s economy will also be better able to weather any storms.
China and Germany have systematically suppressed consumption and investment; their policies have been designed to support exports and reduce imports.
Germany mostly imports what it needs for its own industries — raw materials like oil and gas — as well as intermediate goods.
If it is hit by a tariff, it will maintain the trade imbalance by importing even less.
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