Spain and the US have, after all, been at war in the past. Spain lost territories it controlled to the US back then. Spain is also not in as much military danger as Finland is here on the periphery. Spain has almost its own peninsula, bordered by the Pyrenees and the sea. Access to the Atlantic is also well secured.
Those are a few reasons for the different attitude towards the US’s moves.
The trade balance between Spain and the US is positive for the USA – the US exports more than it imports.
An important partner for Spain, but only the 5th largest export country. I don’t know how they plan to cut off trade to Spain? Portugal is right next door, so it doesn’t really matter whether the port is Lisbon or Cadiz. It’s just useless talk and saber-rattling that will likely lead to nothing once again.
The US is launching trade investigations.
The original country-specific tariffs were ruled illegal,
And then new 150-day temporary ones were introduced.
Now tariffs are being sought through Section 301.
The investigations, launched under the Section 301 trade regulations, will determine whether “those acts, policies and practices are unreasonable or discriminatory, and burden or restrict US commerce,” the USTR said.
The economies subject to these probes are China, the EU, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan and India.
The USTR said that the sectors affected would include aluminium, automobiles, batteries, machinery, non-ferrous metals, semiconductors and steel.
The European Parliament’s trade committee today approved the stalled EU-US trade agreement.
Commission chief Ursula is traveling to Australia next week to sign the new EU-Australia trade agreement.
Bravo!
So Mercosur will be in force by May Day.
According to the Confederation of Finnish Industries (EK), the India agreement (2027) is even bigger than the Mercosur agreement.
Hopefully, trade negotiators have done a good job, without European naivety and the burden of past colonialism, and the 19th-century carbon footprint.
Europe gains a competitive advantage in Latin America’s protected giant markets
The Mercosur agreement opens up the protected giant markets of Brazil, Argentina, Paraguay, and Uruguay to European companies – over 90 percent of the region’s tariffs will be reduced to zero over a transition period.
The scale of the agreement is exceptional. Brazil alone is the world’s 9th largest economy. The economic impacts are in line with this: according to the Commission’s estimate, EU exports to the Mercosur region could grow by almost 40 percent by 2040.
In addition to the economy, the Mercosur agreement emphasizes the far-reaching geo-economic benefits for Europe. In times of trade policy crises, it is vital that the EU has actively sought new partnerships in the large markets of the global south.
The EU has also recently concluded trade agreement negotiations with India and Indonesia. These agreements are expected to enter into force in 2027. Once implemented, the EU-India agreement will be even larger in scale than the Mercosur agreement. EU-Australia trade negotiations are also in the final stages.
Excellent turn from Brussels: Mercosur trade agreement becomes concrete for businesses already on May 1st - Confederation of Finnish Industries Erinomainen käänne Brysselistä: Mercosur-kauppasopimus konkretisoituu yrityksille jo 1.5. - Elinkeinoelämän keskusliitto
Toyota to invest $1 billion to up U.S. production in Kentucky, Indiana
Toyota tekee miljardin tehdasinvestoinnin amerikkaan tullien ja sääntelyn vuoksi.
The article below states that the postponement of Trump’s visit to China to May is unlikely to significantly change the direction of relations between the two countries, according to Bank of America.
The delay is, of course, due to the Iran conflict and may weaken the United States’ negotiating power, for example, due to tariff restrictions. Now, instead of resolving deep disagreements, the parties are only pursuing short-term gains, such as extending trade agreements and stabilizing relations.
BofA also highlighted that more sensitive topics such as Taiwan and investment restrictions will remain in focus but are unlikely to see meaningful progress. While there is some scope for discussions on reciprocal investment, heightened scrutiny and political resistance on both sides continue to limit the potential for significant liberalization.
Overall, the delay changes the timing and tone of engagement, but not the broader direction of U.S.-China relations, which remain defined by strategic rivalry and cautious cooperation.
Then we will start legal proceedings for these current 150-day tariffs. The previous ‘Liberation Day’ tariffs were rejected by the Supreme Court.
About 45/150 days have already passed, but the outcome will surely lead to getting the money back, and of course, a precedent for the future.
Trump imposed the new tariffs under Section 122 of the Trade Act of 1974, which authorizes duties of up to 15% for up to 150 days on imports during “large and serious United States balance-of-payments deficits” or to prevent an imminent depreciation of the U.S. dollar.
The states and small businesses argue that the Trade Act’s tariff authority is meant only to address short-term monetary emergencies, and they say that routine trade deficits do not match the economic definition of “balance-of-payments deficits," according to the two lawsuits filed in the New York-based U.S. Court of International Trade.
“US trade court weighs legality of Trump 10% global tariff”
https://www.investing.com/news/economic-indicators/us-trade-court-weighs-legality-of-trump-10-global-tariff-4607352
Refund applications can now be filed / ‘Liberation Day’ tariffs rejected by the Supreme Court
An interesting situation in itself; the tariffs will be refunded to those who originally paid them.
Undoubtedly, there are many cases where the impact of the tariffs has been shared across the chain of manufacturer / importer / customer.
The refunds will be paid directly to the businesses that originally paid the tariffs, marking an early step in reversing a major trade policy with broad economic impact
Bill Gates is no longer certain that the United States couldn’t shut down Microsoft’s services in Europe.
It’s about time to sign the ‘Digital Independence’ citizens’ initiative.
It is also worth looking at ETF issuers, etc.
I reckon that within just a few years, the US IT and defense industry will take a major hit as a result of Trump’s policies. It won’t help no matter how sensible the post-Trump administration is, because there can be no guarantees against a repeat of the same.
I reckon and hope the EU has finally had enough of Trump’s messing around and will implement some hefty countermeasures. It probably wouldn’t hurt to stop renewing US treasury bonds.
My reasoning is based on the fact that deals have been made with Trump before, which he forgets immediately, only to start applying pressure again as if from scratch. At some point, it must be made clear that that kind of game won’t fly.
The article below explains how Trump and Xi Jinping have begun talks in Beijing to improve relations between the two countries.
The meeting aims for closer economic cooperation in areas such as AI and agriculture. Difficult issues are also on the agenda, such as tensions in Taiwan and the impact of the war in Iran on oil prices.
The trip includes some of the United States’ most prominent business leaders, and at least rhetorically, both sides hope for a constructive partnership instead of confrontation.
Citing a White House readout, the paper said Trump and Xi talked about “ways to enhance economic cooperation,” as well as expanding Chinese agricultural purchases and efforts to limit the amount of ingredients found in the drug fentanyl sent to the U.S. from China.
But Chinese state media reported that Xi flagged that the U.S. and China could clash and even enter conflicts over Taiwan, if it was handled improperly. Trump said this week that he would raise the matter of arms sales to Taiwan with Xi. China has long laid claim to Taiwan as its own territory, and has warned against U.S. interference.
Here are Timo Heikkilä’s highlights from the meeting between Trump and Xi 
Subheadings:
China warns the European Union of countermeasures if the union introduces new trade restrictions against Chinese companies.
According to China, disagreements should be resolved through negotiations rather than protectionist measures. In the background are the EU’s concerns regarding Chinese subsidies, market access, and similar issues.
“Should the European side insist on unilaterally introducing new trade instruments and adopting discriminatory restrictions, the Chinese side will resolutely take countermeasures and adopt effective measures to safeguard its own interests,” the spokesperson said.
The comments come as Brussels has taken a tougher stance on trade relations with China, citing concerns over market access, industrial subsidies and economic security.
The US ‘Liberation Day’ tariffs were found to be illegal, and they’ve come up with replacements that can be kept in place for 150 days, etc.
The administration’s USTR (United States Trade Representative) is doing as told, and after investigating 60 countries, has concluded that all countries jeopardize the US market because ‘forced labor’ is apparently fine.
Either they aren’t even trying or they aren’t implementing measures properly.
The first category includes 54 countries, and they are subject to 12.5% additional tariffs.
The second category includes the remaining 6 countries, with 10% additional tariffs.
The countries in the 10% tariff category include the EU, among others; the rest go into the 12.5% category.
- The following six economies have failed to effectively enforce a prohibition on the importation of goods produced with forced labor: Canada; Ecuador, the European Union; Indonesia; Mexico; and Pakistan.
One might dare to predict that these too will eventually be found illegal if they come into force. It is possible, however, that they won’t pass through the US legislative bodies.
USTR Makes Findings and Proposes Action in 60 Section 301 Investigations Relating to Failures to Take Action on Trade in Forced Labor Goods | United States Trade Representative USTR Makes Findings and Proposes Action in 60 Section 301 Investigations Relating to Failures to Take Action on Trade in Forced Labor Goods | United States Trade Representative
That’s what happened this time:
Trump says France must scrap tech ‘sales tax’ or face 100% wine tariffs: NY Post
A 100% tariff on French wines if France does not scrap its 3% “tax” on American tech companies.
Action is being taken against China’s market manipulation and dumping:
” the views of member states are clearly converging. According to diplomatic sources, member states share the Commission’s assessment that the trade relationship with China is no longer on a sustainable footing. This is partly due to the fact that the trade balance of all member states with China has slipped into deficit.
Evidence of a NEW consensus is seen in the fact that five major member states—France, Italy, the Netherlands, Poland, and Spain—are jointly demanding faster action to combat unfair competition. In a joint discussion paper, they warn that Europe has already lost one million industrial jobs and is at risk of losing strategic sectors and critical industrial capacity.”
Here’s a bit more on the China situation.
China has defended its export restrictions on critical minerals, stating they are in line with international practices. This follows the G7 countries’ decision to reduce dependency on China regarding, among other things, the supply of rare earth metals and magnets. China, of course, accused the G7 nations of disrupting the rules of international trade.
Without naming China, G7 leaders said they seek to reduce dependence on any one supplier outside the grouping and partner countries for rare earths and permanent magnets to below 60% by 2030. The group set an ultimate goal of 50% as soon as possible.