Hats off for President Donald Trump, who only restores global trade, in the light of enormous opposition. The president found it promise to make a trade fair for Americans again, and he is well on his way to achieve exactly that.
While the first rollout of his rate program In April was awkward, the subsequent negotiation of trade agreements was masterful. Much still needs to be worked out for agreements concluded in weeks as opposed to the more usual years, but the essential ingredients are simple. The president and his team are working on reducing the barriers to the export of the US founded by countries around the world and where our trading partners refuse to make concessions and to charge them for access to our markets.
This is why he can force their hands: the United States are the world’s largest economy, for $ 29 trillion; China and the EU come afterwards, about $ 19 trillion. The US leads in pure size and also in the size of our consumer market, with around 70% of GDP, or $ 20 trillion. For comparison: the Chinese consumer accounts for only about 40% of GDP of that country, or less than $ 8 trillion. About 52% of EU economy come from consumer expenditure, or less than $ 10 trillion.
Trump announces a trade agreement with the European Union
Every country on earth therefore wants to export to the US, our country has influence and the president is determined to use it. He removes the rates that other countries have imposed on American-made goods that enter their country and also fight against non-tariff barriers, such as illegal government subsidies, currency manipulation and mysterious regulations set up by Europe and Japan, for example to exclude American agricultural products and other goods. Our farmers are the most productive in the world that can surpass anyone who has inspired difficult protectionist measures from some of our trading partners.
Historically, countries around the world have not dealt fairly with the American conservatives that are not allowed Trump’s tariff program Because they say that it interferes with free trade, but the global exchange of goods and services is not free. When Europe American car manufacturers charges a 10% duty on Chevies to Germany, and we charge only 2.5% for Volkswagens that come here, something has been eliminated.
In the weekend, President Trump negotiated the grandfather of all trade agreements with the EU, which means that 15% rates are imposed for the import of Europe and protect obligations that the EU will import considerable amounts of energy. Success was not insured; The president himself, at the point of his discussions with President of the European Commission Ursula von der Leyen, explained the chances of closing a deal at around 50-50. It was not for nothing that he was careful for our ruthlessly optimistic president.
Back from Scotland, Trump goes into crucial trade week and the decision of the eyes about the cutbacks
Actually for various good reasons. Firstly, the EU is a fractious group of 27 sovereign countries that, despite acting as a block, have very different economies and interests. Secondly, EU countries are largely run by down -bending liberal elites that Donald Trump regard as unout and annoying, because he hangs globalism that binds them together. Thirdly, they hate the United States bitterly, which runs rings around them on everything that matters, such as technology and energy.
Donald Trump shakes hands with chairman of the European Commission Ursula von der Leyen, after he agreed on a trade agreement between the two economies after their meeting, in Turnberry South West Scotland on July 27, 2025.
President Trump’s caution was also justified because EU leaders like to score political points home by standing up against him; It was quite possible that the leadership of the block would set a compromise to look strong. As it is, the deal was widely destroyed by European officials and economists, with the always obstructive French people led by. The French Prime Minister François Bayrou furiously denounced the pact and described it as “submission”.
The French trader Laurent Saint-Martin said he did not want Paris to “settle for what happened yesterday, because that would accept that Europe is not an economic power.”
Here is a news flash for French politicians who pop the ankles of Von der Leyen; Europe is not really an economic power. The World Bank reports that the EU BBP grew by 13.5% from 2008 to 2023 (from $ 16.37 trillion to $ 18.59 trillion) while the American GDP rose by 87% (from $ 14.77 to $ 27.72 trillion). Moreover, the EU BPP per head of the population fell as a percentage of the US GDP per head of the population of 76.5% in 2008 to 50% in 2023. That is downright embarrassing.
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Why is the EU so lagging behind? First, because they have imposed their domestic companies suffocating suffocating hassle. Even the international monetary fund has punished France for their rigid work rules, which means that the hiring and dismissing of employees is expensive.
Secondly, because the EU has settled on the altar of climate change. The dedication to renewable energy sources has led to high electricity costs, whereby German companies, for example, pay almost three times what the US does for industrial electricity. With new technologies such as AI that require enormous amounts of energy, the EU is not competitive.
Thirdly, the EU is impeded by its cumbersome architecture; It is difficult to sign more than two dozen countries, which means that the continent has fallen behind on technological innovation. That means low productivity and GDP growth.
President Donald Trump (R) shakes the hands of the European Commission President Ursula von der Leyen (L) after their meeting, in Turnberry, South West Scotland on July 27, 2025. (Brendan Smialowski/AFP/Getty images)
EU officials are certainly not unique in expressing frustration about President Trump’s tariff struggle. The conventional wisdom of economists and managers is that rates will suffocate trade and make the world poorer. Roger Altman, the successful founder of Investment Bank Evercore, appeared on CNBC on Monday and said: “Ultimately, the rates will be passed on, dollar for dollars, to the consumer, and that means less consumption, less growth, fewer jobs and less profit.”
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Perhaps, but it is also possible that companies bring more production to the United States, to prevent rates and that the income Pour into the treasurySo far more than $ 100 billion, our tax prospects will increase. In combination with lower tax rates and lighter regulations, the trade struggle already attracts increased investments.
Trump has more often proven conventional wisdom; I would not bet against his tariff program.
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