• The intransigent European Union are hitting a dead end with immovable Trump on the issue of tariffs.  The resulting dynamic is what we would expect given 75 years of the Marshall Plan (European Recovery Plan) as part of the EU’s only point of reference.
  • In order for the EU to maintain their socialistic form of government, they need to continue the economic benefits from one-way tariffs that exploits the American consumer market.  President Trump’s plan to force reciprocity is against their entire economic foundation.  The EU simply cannot fathom life without the status quo.
  • In many ways the EU is in the same position as Canada. From their perspective, economic reciprocity is not sustainable; they would have to change their social compacts. This is the core of the conflict.
  • The EU trade delegation hit a brick wall in Washington DC, as the U.S. trade team reiterated the baseline tariffs are not something within the negotiation dynamic.
  • The EU has no power in this dynamic beyond their purchasing power, and if the EU doesn’t want to level the purchasing – thereby maintaining a trade deficit, then Trump will equalize the financial imbalance with tariffs.
  • Canada is in the same position, hence their alignment with the EU.

Source: theconservativetreehouse.com

ussanews.com

  but we’re giving them a bargain. I think it’s very reasonable.”