- An announcement was made by President Donald Trump at the Cabinet meeting today, saying that the EU will face a 25% tariff on auto and other things and will be “announced very soon.”
- He believes that the EU has been taking advantage of the US, not accepting the US’s cars, and leaving millions in deficit.
- In response, the EU will also strike back at the US, which possibly creates more trade conflict in the market.
- He also clarified that tariffs on Mexico and Canada “will come into effect” on April 2, reassuring that there is room for more negotiation for both economies.
- Both Trump and Elon Musk are now considering continuous layoffs for federal workers, aiming to reduce government spending and lower the budget deficit in the United States.
- Despite this, Trump also brought out “gold cards that can be used for recruitment,” believing that those foreign investors who can pay $5 million for the card and invest in the US’s manufacturing industry will also create more job opportunities and pay taxes to the US. Both goals are revenue and economic growth for the US.
Opinion Based
→ If this is done right, then we are likely to see more economic growth. However, that only happens with the “right method.” One thing to consider is that Canada and other economies are now either facing a return in inflation or de-growth despite easing policies, and that suggests a potential for demand disruption, isn’t it?
So what if demand is no longer found and investor sentiment keeps getting lower, resulting in “risk-off sentiment.”. Indicating a reluctance to invest in the foreign, then would the gold card with 5 million dollars really be sold and pay the US national debt?
Looking Forward: Trump will hold a conference with the UK prime minister at around 2 AM on Friday.
