Tariffs: everybody’s scrambling, and the EU makes an offer
European Commission President Ursula von der Leyen announced that the bloc offered President Donald Trump a deal concerning tariffs on industrial goods.
Von der Leyen said at a press conference (emphasis the LI author’s):
“These tariffs come first and foremost at immense costs for US consumers and businesses. But at the same time, they have a massive impact on the global economy. Developing countries are hit especially hard. This is a major turning point for the United States. Nonetheless, we stand ready to negotiate with the US. Indeed, we have offered zero-for-zero tariffs for industrial goods as we have successfully done with many other trading partners. Because Europe is always ready for a good deal. So we keep it on the table. But we are also prepared to respond through countermeasures and defend our interests. And in addition, we will also protect ourselves against indirect effects through trade diversion. For this purpose, we will set up an ‘Import Surveillance Task Force’. We will work with industry to make sure we have the necessary evidence base for our policy measures. We will stay in very close contact to minimise effects of our actions on each other.”
Also, there’s this:
President Donald Trump threatened China with an additional 50% tariff if the communist country did not drop its 34% retaliatory tariffs.
Trump has also coined a new word: “Panican,” which he defines as “A new party based on Weak and Stupid people.”
“A new party based on Weak and Stupid people.”
No, Mr. President, many of your constituents/subjects don’t have the stomach for your bull-in-china-shop approach to the universe. But they’re neither weak nor stupid, they’re grounded and very concerned. (Many of those that are panicking panic at anything.)
Moving from one real estate deal to another, there are bound to be a few busts along the way. (That’s why this business about your deals occasionally falling through are, well, bull-without-the-china-shop.) It’s what happens with a serial art-of-the-deal-maker.
But Mr. President, this is our one and only country you’re dealing with. You have to get this deal [many individual deals, actually] right — the first time. If you don’t, it’s both your legacy and your agenda for USA that are at risk. Heaven help us if you screw up.
It is interesting that the euros specified “industrial goods”. How about food and other farm products? How about oil and natural gas? How about cars and trucks? I do not think this is a serious opening offer.
“These tariffs come first and foremost at immense costs for US consumers and businesses.” Change US to EU and she would be right.
M – “subjects”, and (That’s why this business about your deals occasionally falling through are, well, bull-without-the-china-shop.) It’s what happens with a serial art-of-the-deal-maker.
I am not a “subject”
Trump pegged MJR perfectly.
And the EU lady left out VAT tax as well as non industrial products. She must think Trump’s team is as stupid as the EU “leaders” she deals with.
None of the Americans squawking about tariffs said a word as the Biden regime ran the economy into the ground. And I don’t think these Panicans understand tariffs, either.
Approx. 1/3 of the American colonists neither supported nor opposed the revolution. In every time of crisis, there are those who cannot bring themselves to support what survival demands. Fence sitters and armchair quarterbacks are ever with us.
This administration is America’s last chance. If Trump fails, the American Republic will not survive.
MJR lights his hair on fire
This is the Euros opening response. Respecting their negotiating skill I predict this is not their walk away offer. They have come to the table, which is what President Trump sought. Now the final terms can be discussed and agreed to. No deal is possible unless the parties are talking. We’re now talking with, reportedly, 70+ countries.
Panicans need to chill and watch it play out. Btw, the market was stable today, no Black Monday, to the chagrin of the Never Trumpers and TDS sufferers.
steve walsh,
It ended relatively flat but not before it had the largest intraday swing (2,500) the Dow had ever seen.
Hopefully we have gotten past the panic selling now which is the first step in finding a short term bottom.
Earnings season starts this week and that is going to be something else as good reports will be discounted and bad reports will get punished and future guidance may even be skipped because of the massive uncertainty out there.
Interesting times.
The question is are the fundamental solid with these stocks if so why panic
Yes, the EU’s opening offer on “industrial goods” is an attempt to side-step some big problems. The Trump team are not stupid.
om (6:47 pm) offers, “MJR lights his hair on fire,” but MJR is effectively concurring with Geoffrey Britain (6:44 pm) . . .
“This administration is America’s last chance. If Trump fails, the American Republic will not survive.”
It’s extremely serious stuff. om, if you interpret my comment as lighting my hair on fire, then so be it. We and Trump (and om) *have* to get this right. *This* time.
Now, where’d I stash that fire extinguisher?
“… threatened China with an additional 50% tariff ”
Harbor Freight gonna be busy this week.
Never ceases to amaze me, that people can see our deficits are unsustainable, and yet complain when someone finally tries to right the sinking ship. Okay, if tariffs can’t and won’t work, explain why and show how to fix our broken system. Otherwise, shut the hell up and stop whining.
MJR
Geoffrey Britain has been prognosticating the Doom of America for well on 20 years now, and many other Dooms. That’s Geoffrey’s stock and trade.
And just how do you know it is “this time?” Spescial skilz you have?
As I look at my patiently constructed investment portfolio, I wince. I do remind, however, myself that I made some choices. In the first month of 2025 there was a nice run up. I was tempted to take profits and sit out the storms to come–but decided to see how it played out.
I presume that everyone who is throwing a fit right now had the same option. We make choices and blame others when they don’t work, eh? (As our former friends to the North might say.)
There are a lot of balls in the air. My focus is on the loss of strategic industrial capability in an increasingly dangerous world; and I believe that is a critical dynamic in this. So, I reflect back to the 1940s and 1950s when most Americans understood that some pain was inevitable; but trusted that it would be worth it in the long run. The current situation is not as obvious, but it is there to be reckoned with.
Personal story. During WWII I asked my Grandmother why we had to eat ‘Cream of Wheat’ (ugh) instead of grits. She replied, “Honey, our solder boys need their grits to defeat the enemy”. If a southern boy could go without his grits for the good of the country/world (not to mention his father for three years) we can certainly survive this bump in our comfortable road.
om (8:39 pm), I do not “know” it. It is my best sober assessment of what I’m seeing happening. Your mileage evidently varies. That’s your right and privilege.
But (I say) we need to be fellow combatants in the good fight, and trivial sniping will not further the cause. Peace.
I have sold some the last month or so as I came to believe Trump really was going to do something this time but I’ve still took a hit like everybody else. Didn’t see the Vietnam part coming and that has been a major hit to Nike which was already struggling to the point of being to low to sell so now I’m stuck with it for awhile.
Been some others that have been hammered that sort of surprised me like Starbucks which is a China issue I guess.
Been around long enough to take these times more in stride I guess. The market takes weeks, months even years to go up and then can take days to wipe it all out. It’s just the way it works but when it’s happening it can be scary.
I was in college in 1987 but was around for 2008 and 2020 and this is nothing compared to those.
Why Trump’s Tariff War Actually Makes Sense | Episode 16 (04/07/25) – Vince Coglianese Show – Full Video
https://commoncts.blogspot.com/2025/04/why-trumps-tariff-war-actually-makes.html
Maybe Trump should threaten to charge a protection fee to the Europeans for American Troops in Europe.
Right now, Americans are paying for Europe’s defense.
The Europeans. With their whole 3 Frigates in the Red Sea.
Not carriers.
Not Cruisers.
Not even a Destroyer.
Three Frigates.
Maybe they can save some more money and replace the Frigates with a couple of Corvettes and a Fast Attack Craft.
You mean, three friggin’ frigates? [ chuckle ]
At 6:44 p.m., Geoffrey Britain wrote, “This administration is America’s last chance. If Trump fails, the American Republic will not survive.”
In 2011, Mark Steyn anticipated Geoffrey:
America has a looming rendezvous with destiny. You can’t tax your way out of it, you can’t inflate your way out of it, you can’t quantitatively ease your way out of it. The only door that leads anywhere is the one marked “Massive Government Cuts.” There is not enough money on the planet for what the Permanent Governing Class is doing. If Americans decline to grasp that central truth, this country will die.
From https://www.steynonline.com/4158/default-dear-brutus-is-not-in-our-stars
Griffin.
Absolute swings are meaningless. The Dow is at about 38,000 so a 2500 point swing is about 6 1/2%. Compare, for example, to black Monday in 1987 when the Dow dropped 22%.
Bob Wilson,
Yeah I know but the commenter before me said the market was stable today and I would say 6% intraday swing is not stable that was my point.