Good morning! After skimming the newspapers and social media, I must conclude that Trump has gone completely mad and is on the verge of committing economic suicide on behalf of the entire USA. His latest threat of a 50% tariff on all EU imports starting next weekend is nothing short of economic insanity. This is not just a negotiation tactic or an outburst of anger—it’s a recipe for global economic turmoil that could hit the USA, Europe, and the global economy hard.
According to economists like Carsten Brzeski from ING, such a tariff could lead to higher inflation and slower growth in the USA, while Europe risks a recession. Julian Hinz from the Kiel Institute for the World Economy estimates that US economic growth could fall by 1.5%, while Ireland, with close trade ties to the USA, could see a 4% drop in economic output. Germany, Italy, France, and Spain will also suffer losses. This is no small matter—it’s a threat to global markets, already nervous about rising US budget deficits and a downgraded credit rating from Moody’s.
Trump has previously threatened high tariffs, like 20% on the EU or 145% on China, only to back off when markets shook. This time, his approach seems even more erratic and unpredictable, creating uncertainty that deters investment in the USA. Mary E. Lovely from Syracuse University points out that companies hesitate to invest when the president can suddenly impose taxes that hit both production and export markets. Who would bet on an economy where the rules change from day to day?
Europe isn’t standing still either. The EU has prepared retaliatory tariffs on American goods and the service sector, which makes up the bulk of the US economy. Technology, finance, and travel are vulnerable, and European consumers are major customers. Maurice Obstfeld from the Peterson Institute notes that the EU’s 27 member states won’t easily be pressured into quick concessions, especially when Trump hasn’t even clarified what he wants. This lack of strategy makes negotiation impossible.
Trump’s claim that the EU is “ripping off” the USA doesn’t hold water. As Mark Blyth from Brown University points out, the EU and US economies were equally large in 2008, but now Europe’s is a third smaller. How can a weaker economy “cheat” a stronger one? It’s hard to see the logic.
This isn’t just politics—it’s a threat to people’s livelihoods. Businesses, investors, and consumers on both sides of the Atlantic will be hit if this trade war escalates. Trump is playing roulette with the global economy, and it looks like a dangerous path toward economic self-destruction.
Best regards,
Leif Tullberg
64 years in Danish business
52 years in Venstre
Leif Tullberg
64 years in Danish business
52 years in Venstre
