Summary
Donald Trump has announced plans to impose 25% tariffs on the European Union, claiming the bloc was “formed to screw the United States.”
While details are pending, he suggested the levies would target cars and other imports. The EU, a major U.S. trading partner, has vowed immediate retaliation, with potential tariffs impacting $29.3 billion in exports.
French President Emmanuel Macron had attempted to dissuade Trump, urging focus on China instead.
Critics, including economists and conservative media, warn the tariffs could harm the U.S. economy.
I don’t get it. If we do retaliate, the US will have something to gain (back) by removing the tariffs.
I don’t know what studies you are referring to (please leave a link) but it seems counterintuitive to not have that bargaining chip to force a quick end to the tarriffs (See US vs Canada 2025, US vs Mexico 2025).
I don’t see how one could reasonably measure policies like these through time; of course it’s worse in the short term for all involved parties but should resolve the situation faster. If they only measure the time during active tarriffs of course it’s better through survivorship bias.