Donald Trump dialogues with European leaders in one way, but in the US press it shows another face: that of the winner. In an interview with CNBC, the US President announced (or perhaps it is better to say “threatened”) once again Europe. If the EU does not respect investments, the duties would raise 35%.
The EU does not come out well, especially because there is no shared benefits, but only money squandy. The final text is almost ready, but products to save are still missing. In fact, not everyone will be immediately on the exemption lists, such as wine, medical devices, chemicals and others. To get the exemption, they let Bruxelles know, it will still take time, perhaps months of dialogue (and more money thrown away). In the meantime, Trump declares that the United States finally are again a rich country thanks to the EU. In addition, making some calculations, the USA have grown 152 billion duties since April.
More threats of Trump: 35 % duties
The handshake between Ursula von der Leyen and Donald Trump on the political agreement for the duties has now entered history as a defeat, but you can always do worse. In an interview with the CNBC it is the US president to evoke this possibility. In fact, explicitly, he said that, in case Brussels did not respect promised investments, the duties on European products would go from 15% to 35%.
On the 600 billion of EU investments in the United States, the Tycoon thundered: “We are again a rich country and that money can be directed where I want”. Forget, also on this occasion, that the duties will lead to an increase in the price of products also for Americans, on which the weight of these decisions falls. Someone even hypothesized a check lump sum from 600 dollars to limit the damage.
In the rest of the interview, Trump has not spared attacks against others, such as India, which continues to import Russian oil, threatening it with substantial rates.
Duties on everything, exemptions on a while
A high European official, cited by several media, admitted that they will still be there turbulence with the United States. In fact, the 15% duty on all products may not apply to everything. While looking for solutions such as exemptions for some sectors, others risk staying out of it.
For now from Brussels the confirmation comes that wine, spirits and beer will not benefit from exemption. Then there is the semiconductor and chip question, which Trump absolutely wants to produce in the United States: they will remain outside and will be subjected to specific duties.
Still on the pharmaceutical front the rates could increase: within a year and a half it could be 250%. For steel and car the spokesperson was made of a favor of the German Finance Minister (Germany deals with alone) Lars Klingbeil. “I think we were too weak,” he said.
The spokesman for the European Commerce Commission, Olof Grill, immediately denied that the Commission made decisions without having first consulted the member countries, including Germany. Meanwhile, Switzerland will have to treat independently to contrast 39% duties on top sectors such as chocolate and watchmaking. Arianna Podestà, spokesman for the Commission, confirmed the suspension of countermeasures to the duties on imports from the EU.
