
Tariff Threat: Is This Real Life?
Okay chat so I saw this article about Trump threatening a 50% tariff on European Union goods and my first thought was 'Is this a meme?' Like is this some next level trolling? Apparently the stock market in Europe initially had a bit of a 'panic sell' but then they were like 'Nah he's probably just 'malding'. 'Malding' is when someone gets really really mad for those of you new to my channel. Apparently everyone thinks Trump is just using this as a negotiating tactic. Classic! It's like when I threaten to end stream because I lost a Valorant match...usually I don't end stream. Sometimes I do. Depends how bad it is.
Is Trump Just 'Boosting'?
Some analysts are saying that the fact that Trump used the word 'recommending' instead of 'must' is a dead giveaway that this is all just a big bluff. It's like when I 'recommend' my viewers subscribe... but you know it's totally up to you! But seriously this analyst Ajay Rajadhyaksha from Barclays is basically saying that the EU probably won't end up with a 50% tariff. But they could end up with something like 20% which is like still kinda 'sus' you know? It is kinda like when my internet connection gets 'sus' in the middle of a stream and I pretend that nothing happened.
Germany's GDP: About to get 'Rekt'?
But wait there's more! Another economist Andrew Kenningham from Capital Economics thinks that if these tariffs actually happen Germany's GDP could take a serious hit. Like a 1.7% hit after three years! That's like losing all your LP in one bad League of Legends game. And if pharmaceuticals are included Ireland could get even more 'rekt'! He says the EU will probably settle around 10% but like the road to an agreement could be 'rocky'. So you know buckle up chat!
Cha Ching or 'Noob' Move?
So get this. The US imported a HUGE amount of goods from the EU last year like $606 billion worth! And we had a trade deficit of $236 billion. A 50% tariff could cost around $300 billion directly! But here's the kicker: according to Barclays about 60% of tariffs are paid by the consumers! So it could cost US consumers $180 billion! The US figured out it was paying too much with China and nixed the tariffs! Are they gonna do the same with the EU or are they gonna be total 'noobs' about it?
Will the EU 'Clap Back'?
Okay so the US has a big services surplus with the EU. So if the US starts slapping on tariffs the EU might 'clap back'. One analyst Inga Fechner from ING says that the EU is slow to act but they've got some retaliatory measures ready to go. And if things REALLY go south they could go after US tech firms delay licenses restrict public procurement and limit IP rights! So basically the EU has a whole arsenal of 'griefing' tactics ready to go. Like when I have to start muting people in my chat for being too toxic.
Escalate to De escalate or Just a Big 'Fail'?
Another economist Salomon Fiedler thinks this is just a pressure tactic. He says that if the tariff happens it would hurt both the EU and the US economies. And it would make the US central bank keep interest rates higher. Another analyst Jordan Rochester is wondering if Trump is just trying to 'escalate to de escalate.' It is like how I get angry to get peoples attention then try to calm down and get them to like me again! So who knows what's gonna happen? All I know is that it's gonna be interesting to watch. And if the economy crashes at least we'll have plenty of content for the stream am I right chat?
elizabeths
EU finna 'clap back' harder than my mom when I get a bad grade.
dadeaxra
Trump playing 4D chess while we're all stuck in bronze elo.