Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
The goalpost just got moved to August 2nd from July 9th. So much wins if so many deals are being made! Where is BS1000?
Somewhere telling people that predictions are not always correct? Believing that is the response to everything? The economic equivalent of fiddling while Rome burns?
Tomorrow’s tweet tonight: “Who the hell is this ‘court?’ Has anybody ever heard of them? Why are they rolling out these fake decision decisions that never should be allowed? It’s a disaster for our country and needs to be fixed IMMEDIATELY. Thank you for your attention to this matter!”
Not enough upper case shouting in your post - for future reference. You did hit on how the wealthiest nation in the world is being victimized once again, though. So overall an A+.
The goalpost just got moved to August 2nd from July 9th. So much wins if so many deals are being made! Where is BS1000?
Did you think the resolution would be quick? Only if you are naive. It's a process that will take months-years; after all, changing the world takes time. Any time we get more, it's a win; it doesn't matter if it's 5% or 20%.
Just like Amazon and Apple. If you want to sell your products on their widely used platforms, you pay something. The US markets are similar.
Any time we get more, it's a win; it doesn't matter if it's 5% or 20%.
If you truly do "get more", that is a win, but it's not that simple, of course. Get more from whom; who's footing the bill? What did, or does, it cost elsewhere? Did the gain accrue to something worthwhile, or did we simply cut something we didn't want in order to buy something else we wanted? What's the net goal? Again, I'm at a loss to see how 'we the people' have actually gained anything!?
Just to be clear it's never about 'we the people' getting anything but filched and/or outright robbed by the current administration. It's all about making sure that those who have keep getting even more.
And it goes way beyond that. For instance, corporate execs and corporate boards are making decisions that benefit themselves, as shareholders, board members or to secure their jobs.
And all administrations are some degree of self-serving. It comes down to the degree of ego and greed. This administration being possibly the worst ever.
Any time we get more, it's a win; it doesn't matter if it's 5% or 20%.
If you truly do "get more", that is a win, but it's not that simple, of course. Get more from whom; who's footing the bill? What did, or does, it cost elsewhere? Did the gain accrue to something worthwhile, or did we simply cut something we didn't want in order to buy something else we wanted? What's the net goal? Again, I'm at a loss to see how 'we the people' have actually gained anything!?
And this! Isn't that the truth! A $37 trillion dollar deficit hanging over people's kid's heads. And a tax bill that adds to it significantly. A likely scenario where ignoring climate change, ruins things for everyone's grandchildren.
And people exclaim, "I got a nickel", thinking that they are "winning". Best to pretend that the deficit never comes due. Or that 3 decades of solid science is simply a "liberal myth".
These tariffs are going to hurt South Korea and Japan, although they’ll hurt U.S. consumers even more. So why didn’t Korean and Japanese negotiators make big enough concessions to satisfy Trump?
Because there was nothing for them to concede. South Korea has had a free trade agreement with the United States since 2012, so most U.S. exports to Korea face zero tariffs. Japan, like other wealthy nations, has very low tariffs on most goods. Neither country, then, was in a position to offer big tariff reductions, because their tariffs were already minimal.
And read on: there's plenty more stupid Trump crap to ridicule.
Note also the illiterate letter and the entertaining Steely Dan musical coda.
As if health care for most people isn't already out of this world. Now we need tariffs on the pharmaceutical that keeps people alive, or from suffering. I just read an article that referenced a woman who thought it was "hilarious" to vote for Trump as a way of aggravating Democrats. Now she is losing her Medicaid and the drugs that keep her from going blind. Shits getting real now.
"Trump also dismissed concerns that his threat earlier in the week to impose “secondary” tariffs on Russian trading partners if Moscow did not agree to a ceasefire with Ukraine could impact US consumers, even as experts warned the president risked driving up energy costs with his plan.
“I don’t think so. I think that whole thing is going to go away,” Trump said."
Yeah, he thought the same thing about Covid early on, too..... how'd that turn out for the country?
Wait a minute, the grocery bill is what? $180 more? I can’t get that car that we have to have unless I pay another $8,000. What? Who do I blame for that? Who do I see about that?
Wait a minute, the grocery bill is what? $180 more? I can’t get that car that we have to have unless I pay another $8,000. What? Who do I blame for that? Who do I see about that?
One person
Not sure he understand the word "grocery" - it vexes him. Or, you know, how much things actually cost US consumers.
Speech in Scotland earlier today (Sunday). IMO the reporters questions wandered away from the subject matter, as has been common too often. Past this there was a lot of wandering in the speech, too; which has also been common. The eyes and ears of the world may bear witness. I can imagine what many on the global stage think and how their heads move side to side in wonderment. The 24 minute VIDEO with CC 'on'.
I did two searches for the EU US tariff deal using slightly different wording. The results are below with some redundancy.
#1 A trade deal between the US and EU was announced with a 15% tariff on most European goods imported to the US. The deal also involves the EU agreeing to purchase $750 billion of American energy and increase investment in the US by over $600 billion. Steel and aluminum tariffs were not included in this deal and remain at 50%.
Here's a more detailed breakdown:
15% Tariff: Most European goods exported to the US will now face a 15% tariff. Energy and Investment: The EU agreed to purchase $750 billion of American energy and increase investment in the US by more than $600 billion. No Tariffs on Some Goods: Some goods, including pharmaceuticals, will not be subject to tariffs. Steel and Aluminum: The 50% tariff on steel and aluminum remains in place. Temporary Resolution: The agreement temporarily resolves months of tense negotiations between the two trade partners. "Big One": President Trump described this deal as "the biggest of them all". EU Concessions: The EU agreed to accept US imports without tariffs. "Rebalancing" Trade: The agreement aims to "rebalance" trade between the US and EU.
#2 Here are the major details of the agreement: Tariff rate: A 15% tariff will be imposed on most EU goods imported into the US, including automobiles, semiconductors, and pharmaceutical goods. This is a reduction from the previously threatened 30% tariff rate.
EU commitments: Energy Purchases: The EU has agreed to purchase $750 billion worth of American energy, specifically liquefied natural gas (LNG) and nuclear fuel over three years. This is intended to help reduce Europe's dependence on Russian gas. Investment: The EU will invest an additional $600 billion in the US on top of existing expenditures.
Market Access: The EU has agreed to open its markets to US exporters with zero tariffs on certain products.
Military Equipment: The EU has also committed to purchasing "vast amounts" of US military equipment.
Exclusions: Steel and Aluminum: The existing 50% tariffs on European steel and aluminum will remain in place, though there are suggestions they could be replaced by a quota system in the future.
Pharmaceuticals: Pharmaceuticals are also excluded from the 15% tariff, and their tariff rate will be determined globally, according to von der Leyen.
Zero Tariffs: Specific products like all aircraft and component parts, certain chemicals, certain generic drugs, semiconductor equipment, some agricultural products, natural resources, and critical raw materials will have zero tariffs.
Wine and spirits: The tariff rate for wine and spirits is yet to be determined.
This deal is seen as a way to bring stability and predictability to the transatlantic trade relationship and prevent a potentially damaging trade war. However, it's important to note that the agreement is still preliminary and further details need to be finalized. It is also worth noting that the 15% tariff rate is still significantly higher than the 2.5% that applied before the Trump administration took office.
Lastly, the Japan and EU deals both indicate $600 billion each investments into the U.S. over a period of years. We shall find what becomes of this, eh?
#2 Here are the major details of the agreement: Tariff rate: A 15% tariff will be imposed on most EU goods imported into the US, including automobiles, semiconductors, and pharmaceutical goods. This is a reduction from the previously threatened 30% tariff rate.
EU commitments: Energy Purchases: The EU has agreed to purchase $750 billion worth of American energy, specifically liquefied natural gas (LNG) and nuclear fuel over three years. This is intended to help reduce Europe's dependence on Russian gas. Investment: The EU will invest an additional $600 billion in the US on top of existing expenditures.
Market Access: The EU has agreed to open its markets to US exporters with zero tariffs on certain products.
Military Equipment: The EU has also committed to purchasing "vast amounts" of US military equipment.
Exclusions: Steel and Aluminum: The existing 50% tariffs on European steel and aluminum will remain in place, though there are suggestions they could be replaced by a quota system in the future.
Pharmaceuticals: Pharmaceuticals are also excluded from the 15% tariff, and their tariff rate will be determined globally, according to von der Leyen.
Zero Tariffs: Specific products like all aircraft and component parts, certain chemicals, certain generic drugs, semiconductor equipment, some agricultural products, natural resources, and critical raw materials will have zero tariffs.
Wine and spirits: The tariff rate for wine and spirits is yet to be determined.
Thanks for the detailed information. I've read WSJ and Reuters articles regarding the EU agreement. Much of their information corresponds with what you have posted (quoted above).
Energy Purchases: Dollar amounts are the same. Energy sources were unspecified.
Market Access: "Trump also said the EU had agreed 'to open up their countries to trade at zero tariff.' Von der Leyen said the two had agreed to zero-for-zero tariffs for certain strategic products including aircrafts and their parts, certain chemicals, semiconductor equipment and certain agricultural products, among others, and said the two sides would work to add more products to that list." (WSJ)
Military Equipment: Military equipment wasn't mentioned specifically in either article.
Steel and Aluminum: "Trump indicated in comments to the press that his global steel-and-aluminum tariffs, which are currently at 50%, would remain unchanged. Von der Leyen said the two had agreed to a quota system that would keep tariffs lower for some EU metals exports to the U.S." (WSJ)
Pharmaceuticals: Von der Leyen said that 15% tariffs will apply to pharmaceuticals according to both articles.
Zero Tariffs: Reuters reported the same information (almost verbatim).
Wine and spirits: Von der Leyen: "'We will keep working to add more products to this list,' she said, adding that the situation on spirits was still to be established." (Reuters)
The EU trade agreement resembles the Japan agreement. We still have not reached trade agreements with several of our largest trading partners: Mexico, Canada, and China. U.S. and Chinese officials are meeting in Stockholm on Monday and Tuesday— it's anticipated that their trade truce will be extended beyond the Aug. 12 expiration date.
-A federal appeals court will soon hear oral arguments in a high-profile lawsuit challenging Trump’s authority to impose sweeping “reciprocal” tariffs.
-The case is the furthest along of more than half a dozen federal cases targeting Trump’s imposition of tariffs using an emergency-powers law known as IEEPA.
-Piper Sandler analysts said Trump will “probably continue to lose in the lower courts” and at the Supreme Court, rendering his recent trade deals “illegal.”
“If the Supreme Court rules against Trump, all of the trade deals Trump has reached in recent weeks — and those he will reach in the coming days — are illegal,” the analysts wrote.
“So are his letters informing countries of their new tariffs, the current 10% minimum, and the reciprocal tariffs he has proposed or threatened,” they added.
The Constitution grants Congress the power to levy tariffs. Trump invoked the International Emergency Economic Powers Act (IEEPA) to impose most of his tariffs.
From the CNBC article: "IEEPA gives Trump some powers to deal with national emergencies stemming from 'any unusual and extraordinary threat' that comes in whole or in large part from outside the U.S."
"But attorneys representing the handful of small businesses that sued Trump argue that the law does not let him unilaterally impose tariffs."
"'IEEPA nowhere mentions tariffs, duties, imposts, or taxes, and no other President in the statute’s nearly 50-year history has claimed that it authorizes tariffs,' they wrote in a court brief this month."
Stating the obvious, there will be significant turmoil if Trump's tariffs are deemed illegal by the Supreme Court.
Nations can 'agree to do/buy/invest $X' all they want to appease Emperor Hirocheeto, but that doesn't mean they'll actually ever do it. Look at the alleged "5 trillion" or whatever he claimed would be invested in the Middle East for AI. It was mostly pledges ... well I can pledge to give something but never actually do it. But he could thump his chest and scream "winning!" and get his headline, which is all he cares about.
You can bet the EU didn't give up anything they weren't prepared to give up, and will respond accordingly when he goes off on his next tariff tantrum bender....
Relatedly, if SCOTUS rules hia tariffs illegal, that would be a wonderful thing.
Remember everyone that Trump is responsible for the sun rising, but if his tariffs result in diminished GDP or higher prices, we need to blame someone else. Are we all on board right now?
This brings us full circle to the integrity of future economic reporting. Under the guise of DOGE, we have to wonder whether those figures are bias-free and whether they are less accurate as a result of diminished staffing... and more "loyalists" on the payroll.
Lack of accountability is just one issue. Obfuscation is another.
Comments
Any time we get more, it's a win; it doesn't matter if it's 5% or 20%.
Just like Amazon and Apple. If you want to sell your products on their widely used platforms, you pay something. The US markets are similar.
And all administrations are some degree of self-serving. It comes down to the degree of ego and greed. This administration being possibly the worst ever. And this! Isn't that the truth! A $37 trillion dollar deficit hanging over people's kid's heads. And a tax bill that adds to it significantly. A likely scenario where ignoring climate change, ruins things for everyone's grandchildren.
And people exclaim, "I got a nickel", thinking that they are "winning". Best to pretend that the deficit never comes due. Or that 3 decades of solid science is simply a "liberal myth".
Note also the illiterate letter and the entertaining Steely Dan musical coda.
"Trump also dismissed concerns that his threat earlier in the week to impose “secondary” tariffs on Russian trading partners if Moscow did not agree to a ceasefire with Ukraine could impact US consumers, even as experts warned the president risked driving up energy costs with his plan.
“I don’t think so. I think that whole thing is going to go away,” Trump said."
Yeah, he thought the same thing about Covid early on, too..... how'd that turn out for the country?
https://paulkrugman.substack.com/p/the-art-of-the-really-stupid-deal
He is an embarrassment.
I would not let this guy handle any kind of negotiations. Tariff or otherwise.
15% later announced with EU on all goods. I'm sure he will pat himself on the back, no matter what the implications.
One person
The 24 minute VIDEO with CC 'on'.
#1 A trade deal between the US and EU was announced with a 15% tariff on most European goods imported to the US. The deal also involves the EU agreeing to purchase $750 billion of American energy and increase investment in the US by over $600 billion. Steel and aluminum tariffs were not included in this deal and remain at 50%.
Here's a more detailed breakdown:
15% Tariff: Most European goods exported to the US will now face a 15% tariff.
Energy and Investment: The EU agreed to purchase $750 billion of American energy and increase investment in the US by more than $600 billion.
No Tariffs on Some Goods: Some goods, including pharmaceuticals, will not be subject to tariffs.
Steel and Aluminum: The 50% tariff on steel and aluminum remains in place.
Temporary Resolution: The agreement temporarily resolves months of tense negotiations between the two trade partners.
"Big One": President Trump described this deal as "the biggest of them all".
EU Concessions: The EU agreed to accept US imports without tariffs.
"Rebalancing" Trade: The agreement aims to "rebalance" trade between the US and EU.
#2 Here are the major details of the agreement:
Tariff rate: A 15% tariff will be imposed on most EU goods imported into the US, including automobiles, semiconductors, and pharmaceutical goods. This is a reduction from the previously threatened 30% tariff rate.
EU commitments:
Energy Purchases: The EU has agreed to purchase $750 billion worth of American energy, specifically liquefied natural gas (LNG) and nuclear fuel over three years. This is intended to help reduce Europe's dependence on Russian gas.
Investment: The EU will invest an additional $600 billion in the US on top of existing expenditures.
Market Access: The EU has agreed to open its markets to US exporters with zero tariffs on certain products.
Military Equipment: The EU has also committed to purchasing "vast amounts" of US military equipment.
Exclusions:
Steel and Aluminum: The existing 50% tariffs on European steel and aluminum will remain in place, though there are suggestions they could be replaced by a quota system in the future.
Pharmaceuticals: Pharmaceuticals are also excluded from the 15% tariff, and their tariff rate will be determined globally, according to von der Leyen.
Zero Tariffs: Specific products like all aircraft and component parts, certain chemicals, certain generic drugs, semiconductor equipment, some agricultural products, natural resources, and critical raw materials will have zero tariffs.
Wine and spirits: The tariff rate for wine and spirits is yet to be determined.
This deal is seen as a way to bring stability and predictability to the transatlantic trade relationship and prevent a potentially damaging trade war. However, it's important to note that the agreement is still preliminary and further details need to be finalized. It is also worth noting that the 15% tariff rate is still significantly higher than the 2.5% that applied before the Trump administration took office.
Lastly, the Japan and EU deals both indicate $600 billion each investments into the U.S. over a period of years. We shall find what becomes of this, eh?
@catch22
Thanks for the detailed information.
I've read WSJ and Reuters articles regarding the EU agreement.
Much of their information corresponds with what you have posted (quoted above).
Energy Purchases: Dollar amounts are the same. Energy sources were unspecified.
Market Access: "Trump also said the EU had agreed 'to open up their countries to trade at zero tariff.' Von der Leyen said the two had agreed to zero-for-zero tariffs for certain strategic products including aircrafts and their parts, certain chemicals, semiconductor equipment and certain agricultural products, among others, and said the two sides would work to add more products to that list." (WSJ)
Military Equipment: Military equipment wasn't mentioned specifically in either article.
Steel and Aluminum: "Trump indicated in comments to the press that his global steel-and-aluminum tariffs, which are currently at 50%, would remain unchanged. Von der Leyen said the two had agreed to a quota system that would keep tariffs lower for some EU metals exports to the U.S." (WSJ)
Pharmaceuticals: Von der Leyen said that 15% tariffs will apply to pharmaceuticals according to both articles.
Zero Tariffs: Reuters reported the same information (almost verbatim).
Wine and spirits: Von der Leyen: "'We will keep working to add more products to this list,' she said, adding that the situation on spirits was still to be established." (Reuters)
The EU trade agreement resembles the Japan agreement.
We still have not reached trade agreements with several of our largest trading partners:
Mexico, Canada, and China.
U.S. and Chinese officials are meeting in Stockholm on Monday and Tuesday—
it's anticipated that their trade truce will be extended beyond the Aug. 12 expiration date.
-A federal appeals court will soon hear oral arguments in a high-profile lawsuit challenging Trump’s authority to impose sweeping “reciprocal” tariffs.
-The case is the furthest along of more than half a dozen federal cases targeting Trump’s imposition of tariffs using an emergency-powers law known as IEEPA.
-Piper Sandler analysts said Trump will “probably continue to lose in the lower courts” and at the Supreme Court, rendering his recent trade deals “illegal.”
“If the Supreme Court rules against Trump, all of the trade deals Trump has reached in recent weeks — and those he will reach in the coming days — are illegal,” the analysts wrote.
“So are his letters informing countries of their new tariffs, the current 10% minimum, and the reciprocal tariffs he has proposed or threatened,” they added.
Trump invoked the International Emergency Economic Powers Act (IEEPA) to impose most of his tariffs.
From the CNBC article:
"IEEPA gives Trump some powers to deal with national emergencies stemming
from 'any unusual and extraordinary threat' that comes in whole or in large part from outside the U.S."
"But attorneys representing the handful of small businesses that sued Trump
argue that the law does not let him unilaterally impose tariffs."
"'IEEPA nowhere mentions tariffs, duties, imposts, or taxes, and no other President in the statute’s
nearly 50-year history has claimed that it authorizes tariffs,' they wrote in a court brief this month."
Stating the obvious, there will be significant turmoil if Trump's tariffs are deemed illegal by the Supreme Court.
You can bet the EU didn't give up anything they weren't prepared to give up, and will respond accordingly when he goes off on his next tariff tantrum bender....
Relatedly, if SCOTUS rules hia tariffs illegal, that would be a wonderful thing.
It will takes many years to undo all the damage that Dump & SCOTUS are doing now.
Tariff agreement with China will be significant. Will it be another TACO trade?
Lack of accountability is just one issue. Obfuscation is another.