Don't Celebrate Trump China Tariff Deal Too Soon - He Now Wants To Do Battle With the EU
"DOH! I won trade war with China now I wanna beat down the EU!"
As is par for the course for a twit who suffers from delusions of grandeur and firmly believes he beat China in a trade war (now apparently partially resolved) - Trump now wants to take on the EU. The orange imp actually believes "the EU has no choice except to make a deal". THis according to the WSJ ('Trump's Threat Puts EU On Guard For Trade Battle', Jan. 22, p. A5).
But European politicians said they are prepared to defend themselves and would retaliate against any American tariffs, after Trump set his sights on the continent as the next front in his global fight over trade. This is after several spiels while in Davos, perhaps emboldened by the expectation his cult of spineless wimps in the Senate will acquit him. So, being so falsely empowered he could afford to run off at the mouth (in a television interview on the sidelines of the World Economic Forum) e.g.
“They’re going to make a deal, because they have to. They have to. They have no choice.”
But they DO have a choice because they are not cowardly traitors and enablers like his punk im the Senate. And we know he wants to try to use another deal - especially after a first-phase China deal in his pocket- with the European Union. This would be before the U.S. presidential election - so he can brag more about the economy -and he has threatened to levy tariffs if talks failed.. Well, let them fail and let's see what the mutt does.
France’s finance minister,
Bruno Le Maire,
who was also making the rounds at Davos, quickly shot back.
“If we were to be hit by American tariffs, we would have no choice but to retaliate,” he told The Wall Street Journal. Mr. Le Maire said the EU had already shown itself prepared to retaliate when the U.S. imposed tariffs on European steel, adding:
“A trade war between U.S. and Europe would be a full political and economic failure,”
Indeed, especially as Europe is less vulnerable to U.S. levies than China. The U.S. exports three times more to the EU than it does to China, giving Europe plenty of targets for retaliation. In fact, in earlier posts I'd projected if Trump tries this stunt he may well trigger the recession he seeks to avoid- and down with all his re-election chances too.
Apart from that there is the inherent bullying and irrationalism in wanting to pick a fight that may well evolve into a huge unforced error. After all, Europe’s trade policies aren’t viewed as negatively as China’s. Also Western Europe, unlike China, is a strategic ally of the U.S. such a reckless unforced error arising from Trump's ginormous ego could well leave Dotard with less domestic backing for a trans-Atlantic trade war than he had when he took on China.
In addition, a protracted dispute would inflict pain on both sides. European economic growth is stagnating, making it more vulnerable to tariffs. And European levies on U.S. goods would surely cause political trouble for Trump during his campaign. Can you just see the market tanking in the weeks leading up to November 3rd? What a sight that would be to behold and to know this maggot is finally going down thanks to his own brazen chutzpah!
According to Andy Laperriere, a policy analyst at Cornerstone Macro:
“This is probably the biggest trade-related risk for 2020,”
Well, duh, especially given the U.S. markets, repeatedly roiled by the trade war with China, would face the risk of a repeat.- but with even more U.S. goods targeted by the EU than the Chinese.
We know that Trump in many ways is like a creature that never changes his habits - manily because he is incapable of thinking outside the box. Hence, he has demonstrated that tariffs, even against traditional allies, represent a personal weapon of choice- never mind the effect on the country. This time that convenience of a "weapon of choice" may be just enough to bite him in his fat orange ass come November.