Submitted 3 weeks ago by BrikoX@lemmy.zip to globalnews@lemmy.zip
The US president added that he “can do anything I want” with Brussels’ $600 billion worth of pledged investments
Archived version: archive.is/…/trump-threatens-eu-with-35-tariff-if…
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There was no pledge. That number is all private investment that the EU has no control over, and most of it probably won’t happen precisely because Trump’s tariffs have made investing in the US impossible.
We are shooting ourselves in the foot
That’s why you don’t even enter trade “deal” talks with the madman at all
Trump talks a lot 🙄
And anyone is supposed to take him seriously because…?
The Auckland University in New Zealand published an economic model what the U.S. tariffs mean (the model is updated at 31 July.
TLDR:
Unsurprisingly, the tariffs reduce the countries’ outputs everywhere, but the economist describe the U.S. tariffs as an “economic own goal”.
U.S. annual GDP decreases by 0.36% which equates to US$108.2 billion or $861 per U.S. household per year. Only Switzerland’s GDP decrease is higher at $1,215 per household.
In dollar terms, GDP decreases are relatively large for China, the European Union, South Korea, Japan, Taiwan. Australia and the UK slightly gain from the tariffs, primarily due to the relatively low tariffs levied on these countries. Despite facing relatively low additional tariffs, New Zealand’s GDP decreases by 0.15% ($204 per household) as many of its agricultural exports compete with Australian commodities, which are subject to an even lower tariff.
The U.S. tariffs will compel foreign producers to lower their prices. But these price decreases only partially offset the cost of the tariffs, so US consumers pay higher prices. U.S. businesses also pay more for parts and materials. Ultimately, these higher prices hurt the US economy.
The tariffs decrease U.S. merchandise imports by $486.7 billion. But as they drive up the cost of U.S. supply chains and shift more workers and resources into industries that compete with imports, away from other parts of the economy, they also decrease US merchandise exports by $451.1 billion.
Archangel1313@lemmy.ca 3 weeks ago
This is just textbook extortion. Why would anyone go along with this?