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The Big One

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The Big One

By Bas van Geffen, senior macro strategist at Rabobank

He may not like the Fed’s policies much, but President Trump sure seems to like the central bank’s methods. Yesterday was “THE plans include “examining non-reciprocal trade relationships, [...] including any unfair, discriminatory, or extraterritorial taxes [...], including a value added tax” Extraterritorial taxes is a clear hint at the Digital Services Taxes imposed by several European Union member states. But his inclusion of value-added taxes is a bit more curious, perhaps.

In a Truth, he again underscored that “for purposes of this United States Policy, we will consider Countries that use the VAT System, which is far more punitive than a Tariff, to be failed to de-escalate the trade tensions. So the bloc is also preparing to hit back hard. A first package of counter-tariffs is reportedly ready to be deployed, as a response to Trump’s planned tariff hike on steel and aluminium. On March 31, the suspension of counter-tariffs to Trump’s 2018 aluminium and steel tariffs expires. If the EU does not vote to extend this, these tariffs will blindsided European leaders by re-opening communications with President Putin. And the initial outlines of a potential agreement sketched by US Defense Secretary Hegseth led to much dismay in European capitals. The US is pivoting to the Pacific, and Europe now faces the choice to quickly scale up its own defense capabilities, or to let others decide the bloc’s future for it.

According to Politico, European leaders are still in a state that’s a “Tyler Durden Fri, 02/14/2025 – 11:40


Source: https://freedombunker.com/2025/02/14/the-big-one/


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