Liz Peek: How Trump’s tariff program shapes global trade courtesy of America

Wearing a hat on the president Donald Trumpfacing massive opposition, it has been reordering world trade on its own. The president has pledged to set up a trade fair again for the Americans, and he is on track to achieve just that.

His first development Customs Program April was clumsy and the subsequent negotiations for trade deals were spectacular. In contrast to more conventional years, there are many things that are fully embodied for contracts concluded in a few weeks, but the essential ingredients are simple. The president and his team are working to lower the barriers to US exports built by countries around the world, with trading partners denying concessions and demanding access to the market.

Here’s why he can force their hands: The United States is the world’s largest economy, at $29 trillion. China And then the EU comes for around $19 trillion. The US leads on a huge scale in the size of the consumer market, with around 70% of GDP, or $20 trillion. In comparison, Chinese consumers account for around 40% of the country’s GDP, or less than $8 trillion. Approximately 52% of the EU economy comes from consumer spending, or spending less than $10 trillion.

Trump announces trade agreement with the European Union

Every country on Earth wants to export to the US, and as a result, our country has an influence and the President is determined to use it. He is fighting non-tariff barriers, such as removing tariffs other countries are leviing on American-made goods, and including illegal government subsidies, currency manipulation, and inexplicable regulations set by Europe and Japan to exclude US agricultural products and other goods. Our farmers are the most productive in the world. They can compete with anyone.

Historically, countries around the world have not treated them fairly with the conservatives they dislike. Trump’s Tariff Program They say it hinders free trade, but the global exchange of goods and services is not free. When Europe charges us a 10% obligation on the Chevy sent to Germany, we only charge 2.5% from Volkswagen that comes here.

Over the weekend, President Trump negotiated the grandfather of all trade contracts with the EU, imposing a 15% tariff on European imports, ensuring the EU’s commitment to import a substantial amount of energy. Success is not guaranteed. The President himself on the cusp of his lecture European Commission President Ursula von der Leyen cast the possibility of closing a deal at around 50-50. For our relentlessly optimistic president, he was extremely cautious for good reason.

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In fact, there are some good reasons. First, despite the EU being a distinguished group of 27 sovereign states and acting as a bloc, the economy and interests are very different. Second, EU countries are run by sleazy liberal elites who view Donald Trump as sleazy and annoying. Third, they are fiercely responsive to the United States, which runs the circle to everything important, including technology and energy.

President Trump’s attention was also guaranteed, as EU leaders want to score political points by standing up to him. There was a very high chance that Bullock’s leadership would torch compromises to make it look strong. As it stands, the deal was widely panned by European officials and economists, led by the Ming-stretched French. French Prime Minister François Baillou violently condemned the agreement and described it as “obedience.”

French trade minister Laurent Saint-Martin said Paris “I do not want to settle for what happened yesterday, as I accept that Europe is not an economic force.”

This is a news flash for French politicians who lock the ankle of von der Reyen. Europe is not a very economical force. The World Bank reports that between 2008 and 2023, EU GDP rose to 13.5% ($16.37 trillion to $18.59 trillion) and US GDP increased by 87% ($14.77 to $27.72 trillion). Furthermore, GDP per capita GDP in the US has decreased from 76.5% in 2008 to 50% in 2023. This is totally embarrassing.

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Why is the EU so slow? First, they imposed a suffocating deficit on domestic businesses. Even the International Monetary Fund has raised the employment and layoffs of workers, as they denounce France, for example, for their strict working rules.

Secondly, the EU is prostrating at the altar of climate change. Dedication to renewable energy has led to high power costs for German companies, for example, paying nearly triple what the US does for industrial electricity. The EU is not competitive as new technologies like AI require a huge amount of energy.

Third, the EU is hampered by its troublesome construction. It is difficult to acquire more than 20 countries to register in major policies. This means that the continent is lagging behind technological innovation. This means lower productivity and GDP growth.

EU officials certainly aren’t unique in expressing their complaints about President Trump’s customs war. That was the traditional wisdom from economists and business leaders. Tariffs suffocate trade And it will make the world poor. Roger Altman, founder of Investment Bank Evercore, made his appearance on CNBC on Monday.

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Perhaps, but it is possible that businesses will bring more production to the US to avoid tariffs and earn more revenue. Pour into the Ministry of Financemore than $100 billion so far has boosted fiscal outlook. Combined with lower tax rates and lighter regulations, the trade war has already attracted an increase in investment.

Trump has proven that traditional wisdom is often wrong. I will not bet on his customs program.

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