Trump 25% tariff on European allies until Denmark sells Greenland to US | Hacker News Reader

Trump 25% tariff on European allies until Denmark sells Greenland to US

theguardian.com

21 pointsKnuthIsGod8 comments

When your only tool is a hammer every problem is a nail.

I don't think Americans buy European things because they're cost competitive. Most European goods already have cheaper American equivalents. Pushing prices up will just hurt Americans who want European stuff, but they'll continue to buy at the higher price. If anything it'll benefit Europe, because the price won't be going back to what it was when the tariff is eventually removed.

Americans consumer may continue to buy European goods at a higher price, but that's only roughly a third of the pie. The bigger part is European firms selling intermediate goods and capital goods to companies. There is not fuzzy preference in that marked, it's very cost driven. The extra tarif will tilt the balance heavily in favour of domestic producer.

And these tarifs will not go away quickly. Those domestic producers who benefited will lobby hard to keep them, no matter who sits in the white house.

> And these tarifs will not go away quickly

Companies can buy exceptions and carve outs from Dear Leader

ASML would likely get an exception

There are a lot of things which US companies nearly forcibly import from EU because their is no equivalent in the US. (like pre-products in Pharma)

Does anyone else feel like this is an attempt at a poisoned chalice?

If the opposition does well in the mid-terms they have an utter shitshow to clean up, but if that doesn’t happen they get to pull out their own splinter and claim a victory.

I’m really hopeful the rest of the world continues to strengthen trade and cooperation in the absence of US leadership and stability.

[dupe] https://news.ycombinator.com/item?id=46659651

there is a fuck of a lot of euro high precision and refined manufacturing equipment used in the US, this will hurt small/medium business, and underscores why Chinese social media call him "Comrade Trump", the best friend they have ever had in Washington, as the price point toggles over to Chinese alternatives, and it's China, they can pivot and scale, fast. And for Canada all the shifting and flipping is disruptive, but we are able to attract the best of the best from international skilled trades, scientists, and other proffesions, AND get realy good trade deals, while bringing a strong awareness that well, fuck it, work is good, doing things is good, we have something here worth working for and the contrasts have never been so stark, and it's Canada , we are generaly used to a bit of adversity , and it gives you an appetite.

Reply on news.ycombinator.com