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Trump’s VAT on all imports

 The deal with the European Union is interesting because the only people that really penalizes are American. It’s Americans who pay tariffs, not Europeans. Now I don’t want to ever emphasize the reality, one thing for sure, I want to put any money on the idea that the Europeans will buy a lot of American weapon systems, especially after the Americans have made it clear, then they can turn off the systems.

The two biggest items on the agreement on the promise that Europe will purchase $300 billion worth of energy From America every year. The second, it said the European investors will increase investment into the US market by $600 billion.

to the idea, that America will be able to double its energy exports, which is what is implied here. In 2024, America explored nearly $300 billion worth of energy, which included petroleum products, LNG, and coal. The truth, is that US sports are operating capacity. Someone’s gonna have to spend serious coins to increase the size of the ports. On the other side of the equation, Europe has just acquired energy security from the Americans,

In 2024, European investor and invested $5.7 trillion in direct foreign investment into the United States. up by nearly 22% over the previous year. Granted 2025 has been a bit of a dumpster fire in terms of FDI. Still, the year is only half done. Who knows? However, it’s unclear how the European governments could guarantee such level increase in investments. It’s not them who invest, it’s private enterprises. On the bright side, with the US dollar and freefall, it may be worthwhile for European student invest in America,?

The truth of the matter, is that the deal is very one-sided. There is no doubt that the Europeans lost, and lost big. On the other hand, the Europeans, who had been allies to America are no longer that. They’re fully aware, that the American president tried to screw them over. That will permanently change the relationship between America and Europe.

I wouldn’t put too much stock in the idea of the Europeans will buy tons of American weapons. Certainly not complex systems, such as drones and vessels. The F 22, F 35, are far to American centric, to be interesting to the Europeans. Anyway, the one thing your nose, it’s up from now on, Americans buying European goods will pay a 15% duty.

Yes, Trump won, but a what cost?

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