As I wrote last week this is more of a tariff tiff than a war.
You announce a number — $50B, $200B in tariffs — it doesn’t matter. It’s just a number to begin negotiations.
Wednesday morning news broke that the German ambassador was about to announce that the EU would abandon all import tariffs for cars between the European Union and the US provided the Trump Administration drop its 25% border tax on all EU car imports.
See its all negotiations and never really gets implemented. It’s the Art of the Deal so to speak. Finally, America has someone who does not bow to pressure from other countries that have enjoyed decades of favorable treatment selling into the US market.
This has everything and nothing to do with President Trump. Presidents Obama, Bush, Clinton, Bush could have done this. They couldn’t because they took the money of the multi-national corporations and the globalist free traders who demanded that the US come out on the losing end of most trade deals as a way to pay back for our other sins.
Enter Trump. No ties that bind to these factions. Knows a thing or two about negotiations and plays hardball with them. As I wrote earlier, do you think any country would forgo its ability to sell into the US over tariffs or import taxes?
Of course not. I think I hear China working the abacus to figure out its new proposal right now.