[StormChaser_5]

It's not like the tariffs are gone. It's still 10% for everyone but China. That only seems small in comparison to what was being proposed before. I wonder will EU and others wait out 90 days while negotiating or match the 10% in kind

[shaky-carrousel]

Hopefully EU will still go ahead with the tariffs. We should not be dancing at the tune of the mad king.

[jopsen]

Yes, but what's the rush here?

The EU should do what does best: make things boring.

If retaliatory tariffs is the way to go, maybe do it the boring way: considered bit by bit, no flashy announcement.

Or just make a 10 year deal on LNG so Trump can say we're paying the US money every year.

[paulddraper]

You think that's gonna be the best outcome?

EU already had 10% tariffs on all US autos. (Though tbf most other things were near zero.)

[Aurornis]

> It's still 10% for everyone but China.

There's actually some confusion about that. They said they paused the global tariffs but didn't mention the Canada and Mexico tariffs.

If the 10% global tariff is in addition to the Canada and Mexico tariffs, the net tariff rate on those countries could be quite high. Combined with 125% tariffs on China and we would have very burdensome tariffs on 3 of our largest trading partners.

The rally is because Trump caved to pressure and is backtracking earlier claims that he wasn't going to change his policy.

[wqaatwt]

Didn’t the global “reciprocal” tariffs exempt Canada and Mexico?

[partiallypro]

Mexico and Canada are still at 25% apparently.

[buffington]

I obviously can't say for sure, but my guess for why you're being downvoted: we don't need humans telling us what the AIs think. We're all capable of knowing that for ourselves.

What I'd guess most of us are interested in is what you have to say.

[mk89]

If USA keeps 10% tariffs for everyone equally, why should we interfere? Serious question.

I believe that Trump is shaking things off, but his goal is to introduce a fixed "tariff" like a soft VAT.

He is just testing (and profiting with $$$$$) what happens when you do things like 30% there, 24% there, etc. But his long term goal is a fixed tax. In that context, who are we to judge them? We also have VAT on imports.

[cwillu]

You have VAT on more or less everything, imported or not. A “VAT” that _only_ applies to imports absolutely still deserves retaliatory measures.

[tim333]

There a lot to be said for ignoring other countries tariffs and just having free trade. Hong Kong and Singapore basically did that for decades and grew fast and became wealthy. Tariffs mostly hurt the countries introducing them.

There are some exceptions. Sudden changes can be painful if you built a factory to service some market and they block the sales all of a sudden. But a 10% across the board tariff may not make it worth retaliating.

[rvnx]

It's not a fixed tax where there is the same rate everywhere: when you check the tariff table, you can see that there is a different rate for each item (e.g. 9.4% for Cotton Jeans) and then it says in Chapter 99 that you pay "9.4% + xxx%" where xxx is the special rate for the country.

So it's xx% that goes on top of a rate defined by the type of the item.

[michpoch]

> We also have VAT on imports.

And the US has sales tax.

VAT is paid on all products, it doesn't matter if it's domestic or imported!

[wqaatwt]

> We also have VAT on imports.

Maybe you should not repeat these nonsensical talking points?

VAT applies to everything, both imports and domestically produced goods. This reasoning makes even less sense than Trump’s ChatGPT tables…

> but his goal is to introduce a fixed "tariff" like a soft VAT.

You really don’t understand at all what VAT is?

[MaxHoppersGhost]

EU has already had tariffs on US goods for a long time.

[layer8]

Those amount to only around 3% on average.

[knowaveragejoe]

* The EU has had comparatively very small and targeted tariffs on US goods for a long time

Just so we're all on the same page, instead of maga talking points.

[seanmcdirmid]

Not as broadly to that extent though. Trump's tariffs are 10% of anything, so Europe will reciprocate in kind.