Everything about how Europe has negotiated tariffs has been a disaster. They were the one jurisdiction with the market size and diversification to stand up to US tariffs and they folded in pathetic fashion despite the likelihood -- now proven -- that the US Supreme Court would strike down tariffs.
Now they want a do-over and, luckily their terrible deal with the US hasn't been ratified by European Parliament so they will get it. However now they've irked the US and missed their best opportunity to hit back in a trade war. So this will turn into another mess.
The schedule was for a vote Tuesday and European MP Lange says they will now meet Wednesday.
Officials are taking a soft line, saying they want 'clarification' while they pause. Well, the Supreme Court already gave them clarification and they don't have to worry about higher US tariffs now that Trump has maxed out his 150 day tariff authority (which is also possibly illegal). Yes, they will start with national security investigations for other tariffs but Europe simply doesn't need to negotiate.
Trump is trying to beat back Europe with threats like this (just issued), but it's a bluff, at least in the short term:
Any Country that wants to “play games” with the ridiculous supreme court decision, especially those that have “Ripped Off” the U.S.A. for years, and even decades, will be met with a much higher Tariff, and worse, than that which they just recently agreed to. BUYER BEWARE!!! Thank you for your attention to this matter. President DONALD J. TRUMP
Maybe this is the moment that Europe finds some courage and stands up for the trading system that it built over decades but I'm not holding my breath. The euro is up 18 pips to 1.1798 as the market largely ignores the tariff noise. European stock markets are also largely flat today.
