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The definition of insanity is doing the same thing over and over and expecting different results.
Why do I mention that? Well, this:
Uh…
We know how this ends, right? If Trump goes forward with a 50% tariff against the EU, the stock market will react poorly. The bond markets will follow suit. The U.S. dollar will get shaky. And that will all lead to declining confidence in both the overall strength of the American economy and in Trump’s ability to handle said economy.
And the very threat of the tariffs is already having a negative impact. Here’s CNBC:
Stocks declined Friday after President Donald Trump ramped up his trade fight again, slapping a tariff on Apple for foreign-made iPhones and recommending new stiffer duties on the European Union.
The Dow Jones Industrial Average lost 360 points, or 0.9%. The S&P 500 shed 1%, and the Nasdaq Composite dropped 1.3%.
So, why are we doing this AGAIN?
Well remember that when he paused his politically disastrous reciprocal tariffs, Trump and his top trade advisers promised 90 separate deals with 90 individual countries during that 90-day pause.
That, um, hasn’t happened. And Trump is annoyed. So he goes back to the only tool he seems to believe is in his toolbox — using the threat of punishing tariffs as a negotiating lever to bring a major trading partner to the table.
Could it work? Sure! He has basically given his administration a week to make a deal with the EU. But if it doesn’t work and he does go forward with the 50% tariff, it’s going to be a repeat of what we saw a few months ago.
We know this. Why doesn’t Trump? Or why doesn’t he care?
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