The toughest negotiation of all for the US administration is with the EU.
I just don’t see any world where the EU can accept a 10% floor on tariffs. But there is also a significant trade surplus with the US so I don’t see how Trump’s team can back down.
But if the EU gets sub-10% tariffs then what about other trade partners?
In a perfect world maybe all tariffs end up back at zero and the US gets some trade concessions that open up some markets. There’s a decent chance of that but that sort of ‘win’ is hardly worth the political cost the US has already paid.
Time will tell.
This article was written by Adam Button at www.forexlive.com.