Global Analysis from the European Perspective. Preparing for the world of tomorrow




Trump’s tariffs

The media in the EU tend to condemn and ridicule the US president. Yes, you could say that for them he has become the second biggest threat to the Western world (after Putin of course). Now thinking coolly and analyzing the latest facts, it can be concluded that Trump is doing everything good for America’s budget and economy.

Trump’s tariffs, for example, are portrayed as malicious and harmful to the global economy. In fact, they are an effective tool to successfully negotiate with all countries. The latest example: After negotiations with Japan, the US has lowered tariffs from 25% to 15%, but tariffs on steel and aluminum (50% and 25% respectively) remain unchanged. To reach this agreement, Japan agreed to open its market to American goods, including cars or agricultural products. Japan also offered a package of USD 550 billion in the form of loans and investments in US sectors such as semiconductors and energy, with the US retaining 90% of the profits.

If you want to take the propaganda of the leading Western media (CNN, BBC, ARD and all who serve the US Democrats) at face value, then consider the following: 

when someone/something hurts the US economy, stocks on Wall Street fall – since the stock market has realized that Trump is boosting the economy again, the indicators are rising and reaching their all-time highs. 

many companies listed on the Japanese stock exchange recorded growth following the announcement of the deal with Trump. The Nikkei index rose by almost 4%, while automotive companies rose from 9% (Nissan) to 17% (Mazda). The solid announcement of tariffs in April and tough negotiations by the United States have put pressure on trading partners to make concessions. Although the tariffs are lower than stated, the US has secured preferential terms such as opening markets for US exports (for example, Japan will buy 100 Boeing).

revenues in the US budget are rising hyperbolically and Trump will probably be able to realize his election promises. 

Quelle: Daily Treasury Statement 

Tariffs are, of course, a double-edged sword – they can increase prices and inflation in the US – but they have allowed them to obtain favorable terms that would be difficult to achieve under normal circumstances. 

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