

The US-EU Tariff Deal and Reeves vs Bailey
Jul 30, 2025
Marcus Ashworth, a Bloomberg Opinion columnist and markets guru, joins to dissect the recent US-EU tariff deal, which he argues has positive implications for both sides. The discussion highlights how tariffs can reshape corporate taxes without congressional interference. Ashworth also tackles the contentious exchange between Chancellor Rachel Reeves and Bank of England Governor Andrew Bailey, shedding light on current UK consumer sentiment amidst economic tensions. Expect insights on navigating the complex trade dynamics impacting Europe and beyond.
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US-EU Tariff Deal Realities
- The US-EU tariff deal, while politically contentious, is better for the EU than it initially appears.
- It's a manageable setback and the EU can negotiate improvements over time without escalating retaliations.
Tariffs as Stealth Tax Tool
- Trump uses tariffs not just for trade but to reshape US corporate tax indirectly.
- He's pressuring multinationals to onshore profits, fundamentally changing tax dynamics especially in pharma.
Europe's Economic Tightrope
- Europe's currency strength adds pressure on its economy amid trade tensions.
- The EU's choice to make a deal with the US is a pragmatic move to avoid worse outcomes with China.