Trade War Looms, A Great Disturbance in the Force?

A Deal Can We Get?

Hmm a trade deal they seek. Optimistic European officials are with the U.S. President Donald Trump. A fine line this is between prosperity and peril. Tariffs a dark path they are. Significant economic harm they would cause to both Europe and the U.S. 'Do or do not. There is no try,' I always say. But try they must yes. A deal they need to reach.

Work to Do Much There Is!

Pascal Donohoe the finance minister of Ireland speaks he does. 'Lots of work that we have to do,' he says. Wise words these are. 'Use the time ahead wisely we can,' he suggests. Avoid measures that could harm both sides of the Atlantic he hopes. A framework they must create. Avoid the dark side of tariffs they must. Harm tariffs will. Hmmm.

Tense Negotiations Feel the Tension I Do!

Tense the negotiations are. Like a lightsaber duel yes. Tariffs looming they are. Trump's tariffs on EU goods and EU countermeasures. Avoid them they must. A 20% 'reciprocal' tariff Trump initially imposed he did. But paused it for 90 days he has. Lowered the duty to 10% until then. A glimmer of hope this is.

The Force of Fines and Frustration!

Tangible compromises yet to yield these talks have. Sour the backdrop it is. Fines the EU imposed on Apple and Meta for breaching digital competition laws. A dark omen this is? The Force clouded it is. 'Difficult to see; always in motion is the future,' I say.

Trade Balance or Imbalance Is It?

Balanced trade in goods and services between the EU and the U.S. the EU insists. A surplus of 155.8 billion euros they had with the U.S. for goods in 2023. But a deficit of 104 billion euros on services. Complex the situation is. Machinery and vehicles the largest chunk of EU exports they are. 'Judge me by my size do you?' Hmm?

A Treasure to Protect This Is!

Harmful failure to reach a deal it would be. For both Europe and the U.S. yes. 4.5 billion euros a day at stake. 'A treasure we need to protect,' says Spain's Finance Minister. An extended hand the EU offers. But a fair agreement it must be. Taxation on goods tariffs are. Bad for consumers they are. Pause investment businesses will. Headwinds major they are. The IMF warns. A dark path tariffs are.