Trump Triumphs: EU Trade Deal Leaves Economists Rethinking Their Stance
US President Donald Trump has once again defied expectations, securing a significant trade deal with the European Union that's leaving economists scratching their heads and prompting a reassessment of their previous criticisms. Sky News host Rita Panahi unpacks the details of this “enormous win” and explores the implications for global trade and the US economy.
For years, economists largely dismissed Trump's protectionist policies and threats of tariffs, predicting economic downturns and widespread disruption. Many predicted his aggressive negotiating tactics would backfire, alienating key allies and harming American businesses. Yet, the recent agreement with the EU – encompassing commitments on digital trade, agricultural products, and a pledge to work towards eliminating tariffs on certain goods – suggests a different outcome.
The deal, while not a comprehensive free trade agreement, represents a substantial victory for the Trump administration. It addresses long-standing trade disputes, particularly concerning US tariffs on EU steel and aluminum, and establishes a framework for further cooperation on issues like data privacy and intellectual property protection. The agreement also signals a willingness from the EU to engage in more constructive dialogue with the US on trade matters.
“Even the Trump deranged crowd had to acknowledge what an enormous win this is,