The 50% European Union Tariffs Are On Again, No Wait!
I want you to do a brief exercise with me. Close your eyes at the count of three. Open them again. Do you know what just happened? Probably another tariff was removed or added. I’m referring to the European Union tariffs, which were at 50%.
Last week, President Trump was asked by a reporter if there was any negotiation with the European Union. President Trump replied that the negotiation was for 50% tariffs.
Listen to this podcast.
The European Union Tariffs Are On/Off Again
With just one phone call, similar to those from other world leaders, we now face yet another 90-day pause, adding to the uncertainty. Chaos breeds political instability, which in turn leads to financial instability. I’ve been emphasizing this repeatedly. The real question now is: How are you preparing for this situation?
Volvo is preparing to lay off 3,000 employees, amounting to 15% of its workforce, in anticipation of further uncertainty. They aren’t alone. Ford didn’t even publish their guidance this quarter. When people don’t know what’s coming, they hesitate. Unfortunately, that may be the best course of action right now because we simply don’t know what to do.
I’m no different than anyone else. I had considered an RV port to cover my camper, but changed my mind. Instead, I’m opting for a simple $50 cover, just enough to protect the roof. I took the same approach with my truck. Spending $3,000 or $4,000 on a carport just doesn’t make sense right now. A cover will literally and figuratively help me ride out the storm.
And with these tariffs potentially going through, the cost of that carport will only climb higher. I’m not willing to spend $4,000 until I know what’s happening. Unfortunately, I’m not alone in this hesitation; the rest of the country, and even the world, is holding back. That means people aren’t spending their money on things they’d normally enjoy. Whether it’s a luxury item like a new TV or a car, uncertainty is keeping wallets closed.
This is nothing more than a toxic relationship, on both a financial and global scale. And toxic relationships never work. I’ve written about this before. See the links below. You can choose between the blog and video versions.
- Do Toxic Relationships Work? What About a Toxic Economy?
- YouTube- A Toxic Relationship versus a Toxic Economy
Why would anyone willingly enter a toxic relationship? Yet, that’s exactly what we’re doing. Going back and forth, saying there will be 50% tariffs, then reversing course. The constant inconsistency erodes trust. If this is how the world perceives us, what does it do to the economy? Nothing good. It destabilizes it, because uncertainty is just as damaging as any direct economic hit. And that level of unpredictability could very well lead to a recession.
And so, here we are. By the time I finish this video or you finish reading this blog, chances are there will be news on new tariffs; again. And then what? Who knows. All I can say for certain is that chaos breeds political and financial instability.
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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only. Also, this transcript was edited for clarity. The transcription may contain inaccuracies or errors due to the limitations of transcription software and the quality of the audio. I have made every effort to ensure the accuracy of the transcription, but I cannot guarantee it.
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