Trump has been relatively clear on this. He is looking for unilateral concessions from trading partners + acceptance of the base tariff. EU equally has been clear that it wasn't willing to accept this structural set up.
https://x.com/Brad_Setser/status/1926350121958040030
I understand why most folks in the market are discounting Trump tariff threats, but I remain worried -- there just isn't a willingness in Europe to do the unilateral concessions Trump insists are needed.
https://x.com/Brad_Setser/status/1926350475336593763
And I find the US demands rather uncreative -- a mix of old grievances and things that don't really matter for the US economy. The obvious win (lowering the trade deficit by bringing the US pharma industry's profits back onshore) is being ignored
https://x.com/Brad_Setser/status/1926351015458001162
It is worth reading the Times story (which gives the European point of view) in tandem with the WSJ story, which give the point of view of the Trump Administration.
https://x.com/Brad_Setser/status/1926351401724039373
And this piece, for the French magazine
@Grand_Continent
, turned out to be unexpectedly well timed ...
https://x.com/Brad_Setser/status/1926351712878497851
