No Deal Yet
US-Europe Trade Talks Hit a Wall
It seems not everyone is falling over themselves in haste to strike a trade deal with the United States. Europe is apparently being slightly standoffish in trade talks with the US.
The euro fell on Friday, reversing earlier gains after U.S. President Donald Trump said he would recommend hitting the European Union with 50% tariffs from June 1, reigniting investor fears over the impact of duties on the world economy and trade.
The news of Trump’s trade ire came on the heels of his insistence via Truth Social that Apple pay a 25% tariff on every iPhone not made in the United States.
A consistent theme throughout Donald Trump’s trade commentary has been bringing manufacturing back to the United States. We should not forget his Agenda 47 promise to “turn the United States into a manufacturing superpower.” Countries and companies which do not embrace Trump’s vision of America’s economic future can expect to receive a fair bit of economic pressure.
Pressure is certainly what Donald Trump is applying to the European Union, as his Truth Social post shows more than a little irritation with how the EU is negotiating on Trade.
Donald Trump is not giving up on his ambition of reshoring manufacturing to the United States. Europe, with its own trade concerns, is pushing back.
How this ends is anybody’s guess.
I would be amused to hear a psychiatrist’s assessment of how many leaders in the EU would likely be diagnosed with Trump Derangement Syndrome. I’ll bet it’s way more than half.