
qinbafrank|May 24, 2025 07:55
Why did Trump suddenly make trouble for the EU? In the previous negotiation proposal submitted by the EU, they were unwilling to propose specific solutions to issues of concern to the United States, such as streaming service fees, value-added tax, automotive regulations, and anti-monopoly fines imposed on American companies. It seems that the EU does not intend to change the EU's VAT system, nor does it intend to change health and digital regulations, which are regarded by Trump as non-tariff trade barriers.
At the same time, the EU has 27 member states, and every communication between member states requires close consultation, which also delays the progress of negotiations.
On the surface, it appears to be dissatisfaction with the negotiation proposal previously submitted by the European Union;
In essence, the wait-and-see attitude of countries in the tariff negotiation process and the doubts of countries on the tariff determination of the White House forced Trump to take measures. On the one hand, Trump expressed serious dissatisfaction with the EU proposal and tried to speed up the negotiation process through tariff threats, on the other hand, it was to reshape the deterrent power of the tariff stick;
More deeply, as the 90 day deadline approaches, Trump should be eager to accelerate the progress of the negotiations, so the re offering of the tariff stick regardless of the risk itself represents the urgency and pressure of the White House on trade negotiations. I can see that Trump is worried!
As discussed in the "Everyone Talks about Space" a few days ago, it is highly likely that the additional equivalent tariffs will be abandoned. However, the path and pace to reach this endpoint are very unpredictable, and unexpected fluctuations are likely to occur. The market has both the expectation of turning again at the last moment of 6.1, and the fear that Trump may gamble in the end if it fails to reach its goal. The fluctuation in the coming week should be great. As the deadline approaches, the whirlwind of tariff storms and the possibility of a rapid reversal of the situation are also increasing.
The second half of next week has become another critical turning point.
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