Uh, Trump Slaps Down EU's "Zero-for-Zero" Proposal
Feel the Quake in Wall Street:
Trump unequivocally opposes EU plan
Trump's taxes on the majority of goods from nearly every nation worldwide have set off a cataclysmic tremor through the stock market. The specter of a global depression is looming on the horizon, especially in Europe. In response, the EU extended a hand with an offer of zero-for-zero tariffs on industrial goods. But alas, President Donnie boy ain't having it.
Belle of the Ball? Not the EU:
In a brusque rejection, Trump himself publicly spurned the EU's offer, saying, "Nah, that won't work." White House advisor, Peter Navarro, stated that the EU plan was a good starting point, but that nations needed to tackle non-tariff barriers too.
Starting this past Saturday, a standard "minimum rate" of 10% has been slapped onto imports entering the US, in addition to existing taxes. Starting Wednesday, over 60 countries, including the EU, Japan, and China, will face harsher tariffs. For goods from the European Union, a general 20% surcharge will be applied.
EU: Always Game for a Smackdown:
The European Union is hoping for a diplomatic resolution to their trade fisticuffs with Trump. EU Commission President, von der Leyen, mentioned on Monday that, considering Trump's declared tariffs, she had proffered Trump a "zero-for-zero" tariff deal for industrial goods. She added that the EU was "always ready for a good deal."
Meanwhile, the EU Commission and its member states are cooking up a series of countermeasures to combat US tariffs. The European Union intends to defend itself from indirect effects through trade rerouting, bolster other commercial relationships, and concentrate on the 83% of world trade outside the US, according to von der Leyen. Counter-tariffs will gradually take effect from mid-April.
Trump: Eager for Some Chinwag:
Trump expressed an eagerness to chat about tariffs with other countries, but emphasized that he'd stick to his agenda. "Both could be true," Trump responded when asked if he wanted to engage in trade talks or keep tariffs as they are. He proposed that agreements could be "permanent," but also conceded that negotiations might occur.
Putting Germany on the Map:
According to Thorsten Weinelt, the Chief Investment Officer of Commerzbank, Trump's trade policy poses a threat to the world economy. Weinelt stated, "The longer Trump holds on to his laser-focused trade policy, the greater the danger to the world economy." As the markets fear a recession triggered by restrictive tariff policies in the US, Europe, and China, Weinelt declared, "The Trump tariff shock is the shock of the century."
Although markets had anticipated Trump to hike up import taxes, the proposed levels far outstrip all expectations. "The tariffs are as big as they've been since World War II, and they affect almost every country," Weinelt said. The Trump administration needs to exhibit that it's ready to bargain. Hope lies in the mounting pressure on Trump from his fellow Republicans in the U.S.
- The EU Commission, in an attempt to reduce trade friction, offered a 'zero-for-zero' tariff deal for industrial goods on Wednesday, a proposal that President Trump initially rejected.
- Amidst talks of a global depression, the European Union is planning to defend itself from US tariffs through measures such as trade rerouting, strengthening other relationships, and focusing on trade outside the US, with counter-tariffs expected from mid-April.
- Peter Navarro, White House advisor, stated that although the EU's offer of zero-for-zero tariffs was a good starting point, it was essential to tackle non-tariff barriers as well.
