1Mon·

Monday: Face-Ripping Rally ? - EU and US strike historic trade deal

New US-EU trade deal worth $1.35 trillion

At a summit in Scotland, Donald Trump and Ursula von der Leyen reached a major trade deal. The US lowers its threatened import tariffs from 30% to 15% on almost all European exports. In return, the EU will invest $750 billion in U.S. energy and $600 billion in broader economic cooperation, including defense. Higher tariffs of up to 50% also remain in place on steel and aluminum. The deal avoids a trade war and marks a new chapter in transatlantic relations. $VOO (+0.04%)
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9 Comments

NichtRelevant@NichtRelevant

1Mon

15% on imports from the EU. Is that a good deal? For whom is it good and what are the exemptions?

1.35 trillion invest. How will that be established? Are there going to be quotas for the individual member states?

Stock market will go up, but I am sceptical.

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Dividendenopi👴@Dividendenopi

1Mon

@NichtRelevant I'm with you there. It will be celebrated in the short term. When the medium-term effects take hold, there will be disillusionment on both sides.

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NichtRelevant@NichtRelevant

1Mon

@Dividendenopi I also really wonder how this is to be implemented with the investments, the energy purchases and the military sales.

Perhaps the deal already includes orders that are already on their way anyway. But the EU doesn't have its own army, for example - how does the EU intend to ensure that its members order jets and other equipment in the specified amounts? In particular, it was recently shocking that certain things (software, access to target data, etc.) can simply be switched off by the USA if necessary and thus become (almost) useless in the worst case. The attempt was made to pursue a defense strategy involving national industry. The agreed deal now does exactly the opposite.

Even the promised general investments in the USA. This would have to be provided by EU companies - how does the EU ensure this? And what does that mean? Is it that we are putting up production lines and factories for new jobs in the USA? In short, we are supposed to transfer jobs and added value from the EU to the USA as part of the deal. And as a reward, our products will 'only' be subject to a 15% tariff.

It's a really great deal - where are the investments in Europe? We are the bigger domestic market - why don't we finally sell ourselves better? It's incomprehensible to me.

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Uwe@SchlaubiSchlumpf

1Mon

@NichtRelevant At the moment, everyone is pandering because it's good for the short term. Australia is similar. I don't understand why they are so obviously allowing themselves to be blackmailed. Probably mainly the military dependency that the USA is still needed as a full NATO member. We just pay protection money if we can't defend ourselves

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Solitair@Solitair

1Mon

Don't think so. 15% were already priced in. But we'll see.

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GeldGenie@GeldGenie

1Mon

Politics in the USA are a snapshot. Trump can celebrate. The EU is reassured. Renegotiation after the next election. 🤷‍♂️

Details are still to be worked out anyway (period, lists, exceptions,...).

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Darth Vader@TheRealDarthVader

1Mon

Are you a Trump bot?

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Pascal W.@pwasbeer

1Mon

@TheRealDarthVader ja

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Pascal W.@pwasbeer

1Mon

@TheRealDarthVader Are you still playing with Lego?

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