It should be added that when I previously discussed the issue of the "North American Economic Belt," I mentioned that once Europe compromises, it will become the main dumping ground for U.S. production capacity in the future. Europe's compromise means that Trump has solved the market demand issue, and now he only needs to address the market supply issue. From another perspective, if there is demand in the market, it will nurture a surge in production. Of course, the premise is that there should be no competitors on the supply side, and China happens to be a stronger competitor. Therefore, in the future, the U.S. will inevitably find ways to cut off China's industrial output chain. This is an unavoidable contradiction.
Cato_KT
Cato_KT12 tuntia sitten
The US-EU trade agreement has been reached, marking a milestone trade deal. According to the latest news, it has been confirmed that the US and EU have reached a trade agreement, with the specifics as follows: 1. A 15% base tariff: The US will impose a 15% tariff on EU goods (such as automobiles, pharmaceuticals, and semiconductors), significantly lower than the previous 30%. 2. EU's reciprocal commitments: The EU promises to expand its purchases from the US over the next few years and to invest heavily in the US, including $750 billion for US energy and over $600 billion in strategic investments in US industries, along with substantial military procurement. 3. The issue of automobile tariffs remains unresolved: The US maintains a high tariff of 27.5% on EU auto parts, but has stated that if the EU can pass relevant legislation to address US industrial product taxes, it will lower the auto tariff to 15%, hoping to achieve this in the coming weeks. 4. In this trade agreement, both sides will also cooperate to promote digital trade, supply chain security, export controls, and investment reviews. Assessment: Overall, reaching a tariff agreement with Europe is a significant resolution to a major challenge faced by Trump. I have always emphasized that there are two major hurdles for Trump in tariff trade: one is the EU, and the other is China. Now, with the EU's tariff issue resolved, future trade pressures will naturally focus on China, and the next 90 days of tariff suspension are likely to be difficult to negotiate. On the other hand, the US-EU trade agreement also has a potential condition: low tariffs in exchange for European countries' compromises on the Ukraine issue. In the past, Ukraine could maintain its resistance against Russia largely due to the support from various European countries. Now that the supporters are gone, Ukraine's ability to continue the war has significantly diminished. Furthermore, the US and EU reaching a trade agreement indicates that they have preliminarily reached a consensus on many issues. Earlier this week, after the "Tze meeting," I mentioned that to pressure Ukraine into a compromise, it is essential for the US and EU to first maintain unity and then jointly pressure Ukraine. Therefore, the US-EU trade agreement also implies that the Russia-Ukraine negotiation process may accelerate, making it easier for Zelensky to compromise, marking a significant geopolitical turning point!
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