Quick report on local 6pm news, just now: EU to buy $750B of US energy, and “invest” $600B.
Steve
3 Likes
In perhaps over 100 years. In 1Q 2025, the EU imported 95m euros of energy products, of which the U.S. was dominant in one category- LNG. With 50% of the import market, the U.S. exported about 2.5b euros. In petroleum oils, the EU imported about 20b euros, of which the Americans contributed about 15%. The U.S. exports a fair amount of coal there, but the market for coal is collapsing in the EU- cut in half since 2018. So good luck with that, Donald.
Clearly, the E.U. has grasped that Donald and Judi only want headlines. Substance is unnecessary.
13 Likes
NBC evening “news” added 15% baseline tariffs, for about everything from the EU, including cars.
Steve
2 Likes
That should bring inflation down.
11 Likes
According to Mr Google, the EU imports about 375B Euros of energy per year. The program appears to use tariff threats to force trading partners to commit to buying supplies from the US, rather than other suppliers.
The Japanese PM made his pilgrimage to visit his nibs very quickly after the inauguration. “himself” came away with a Japanese commitment to invest in an Alaskan NG pipe project. Apparently, the NG pipe project has been cavitating for a number of years, over doubts about it’s economic viability. With the Japanese forced to buy gas from it, seems the viability thing is no longer a concern.
I have been sitting on my CVX and COP for quite a while, waiting for Mr Market to catch on to what the program is.
Steve
2 Likes
European Commission President Ursula von der Leyen presser.
The oil and gas purchases are $250B/year, over three years, replacing fuel bought from Russia.
Farley must be absolutely dyspeptic. Japanese and EU cars coming in at 15%, while he pays more on his Mexican cars.
Steve
Will, me as a Mexican patriot, ain’t too happy either. Mexico, popularly politically and pragmatically albeit with with difficulty, made a big bet on an economic alliance with the USA over two decades ago, and now that confidence is being betrayed.
9 Likes
As suggested somewhere along the line, the difference is Japan and the EU are economically large and powerful. Mexico and Canada are not. So the calculus of his nibs may be that Mexico and Canada can be bullied.
Steve
5 Likes
Yep. This is a big FO to the American auto industry. They didn’t bend the knee sufficiently and now they are paying the price. The workers are paying the price for the bosses not humbling themselves.
3 Likes
Remind me, USA going from 2.5% to 15% on EU imports right ?
And as if by Magic, prices for American consumers will not rise, the POTUS has given us his word on that, on many different occasions, I heard him, and seen him say it, so not fake news.
So since the American consumer has been guaranteed that they will not see or feel any price inflation, American companies that import basically anything, are going to have reduced Gross Profit margins. I could be wrong, but that doesn’t sound like it’s good for the stock market.
I’ll keep my eyes and ears open though, as I’m sure there is some magical magic coming our way, so everything gonna be allrite
9 Likes
Actually, US tariff on EU cars went from 2.5% to 27.5% (2.5+25) last April, or thereabouts. So now, it’s a cut from 27.5 to 15%.
“Himself” will tell them, again, move their production back to the US, and they pay no tariff. GM is moving a lot to the US. Honda and Nissan are increasing production rates in the US. Stellantis is talking about moving the Ram 2500-3500 to Michigan, from Mexico. Ford hasn’t said anything about moving anything to the US. Ford has confirmed it is shutting a US plant down, to “retool” it for EVs that most people don’t want.
Steve…still chuckling about someone’s comment that Ford had good, stable management
5 Likes
You think the US is really establishing a command economy, at TIG‘s pleasure? That must be good news for stocks.
/ scsm
4 Likes
LoL, no, I don’t think that. I just like noting the conflicts between his policies and his words.
Imo, the stock market is ignoring how the tariffs are a tax on the American consumer. Or if the importing companies try to keep their prices down and not pass tariff taxes down, then their profit margins will be hurt.
But one thing the stock market luvs is cheap money, and they know Trump wants a zirp, or near zirp policy, and he gets the chance to appoint another Fox “News” talking head, this time to be the Fed Chair, in 2026,I think. Add in that Trump is dismantling those pesky regulatory agencies like the EPA, and the cost of keeping the air and water clean might go way down ( at the cost of the health of Americans, but that is a non issue lol ).
7 Likes
The tariffs are a wealth transfer mechanism: take away from Proles, but more than offset, to the “JCs”, by tax cuts.
Ayup. More crack for the money interests.
“Himself” is 79 years old. He doesn’t care what happens in 20 years. Just like most other “JCs”. At any time in the 90s, the honchos at Radio Shack could have come in off the golf course long enough to rework the company’s business model to be viable in the changed competitive environment. But no. Bernie make his fortune, and retired in 94. Roach made himself rich, and retired in 1999. Len Roberts got rich, and bailed in 2005. The company lasted just long enough to enrich them, then collapsed into bankruptcy in 2015.
Steve
6 Likes
Here’s the BBC’s take – “not a total defeat for Brussels”.
The Trump administration is celebrating this as a big win and in many ways it is. But it is also not a total defeat for European Commission President Ursula von der Leyen…
The consolation for the EU is that it now faces a 15% US tariff, rather than the 30% that had been threatened…But in return the EU is “opening up their countries at zero tariff” to American exports, Trump said…
The EU deal brings with it the expectation of roughly $90bn (£67bn) of tariff revenue for US government coffers – based on last year’s trade figures.
DB2
2 Likes
Same as Indonesia, except their goods are tariffed at 19%.
Can’t help but wonder what the conditions are for the $600B the EU is supposed to invest in the US.
But that’s OK. His nibs takes another victory lap.
The Commission pointed out that the figure would come from private companies, not European taxpayers, contrasting with Japan’s promise to mobilize $550 billion of both public and private investments in the U.S. as part of a recently agreed trade deal.
Steve
3 Likes
Here is the complete take on the deal.
The agreement also deals another blow to Detroit automakers, which objected to a similar deal the Trump administration reached with Japan. The 15% auto tariff on EU cars imported to the United States undercuts the 25% tariff American automakers pay if their cars are built in Mexico.
After reading these articles can anyone really point to anything that was great for America? Tariffs are only going to raise prices.
9 Likes
Tariffs take money away from Proles, and cover more tax cuts for “JCs”. If you had lived in Michigan, you would have seen that done repeatedly.
Steve
1 Like
The automobile industry is getting hammered. American cars are going to be more expensive than Europeans unless they change their supply chain. Even then they could be more if they do not cut salaries and wages. But I can’t say that Michigan isn’t getting what they voted for.
3 Likes
You imply that may have been the objective to start with.
Then again, the EU now carries around a big fat sign reading „Blackmail me!“
4 Likes