EU has been the traditional partner and best friend of US, it is so awkward that their tariff is above China to have 50%. Even though the level of China and EU are just temporary and not yet a final target. But after the tariff war, people said that it provided a chance for China to unite with other countries to fight with China and EU is the target that everyone aims at.
During the election campaign, Trump’s target was just 60% aiming at China, but after the election, 25% on Canada and Mexico were added. So it surprised people when EU was also the target of high tariff.
However, Trump is a person which widely opens his lion mouth and asks for a lot, then greatly cut down and let people feel comfortable or even won a war. Ultimately he was the actual winner. Such as his tariff on China cuts from 145% to 30%, a lot of people was sensationally happy in winning such an argument and gladly accepted as a victory. Who wins? To EU, UK and Japan which are traditionally their allies, it is the same.
The tariff talk of other countries are still carrying on, they know the essence of the lion mouth of Trump already, they are not stupid. What is meant by Reciprocal Tariff, everyone knows the final target will be cut dramatically and they are asking for further drops. It is not a victory if it is cut, it is just his trap or trick to make people fall into this emotional trench. So after the cut, both US and EU and others will sing Alle Menschen werden Brüder! ( All men are brothers from Ode to Joy)
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.