Marketplace U.S.-EU relationship status: It's complicated
4 snips
Jan 19, 2026 
Michael Waters, a journalist and author, dives into the digital revolution transforming how parents manage allowances through apps and investing tools. He explores the historical roots of allowances and their evolving purpose across different classes. Meanwhile, Sean McHenry traces the evolution of economic vocabulary from Adam Smith, emphasizing its impact on understanding today's economics. Together, they discuss the complexities of U.S.-EU trade relations amid tariff threats, highlighting the unpredictable nature of current policies.
AI Snips
Chapters
Transcript
Episode notes
U.S.-EU Trade Fragility
- The U.S. and EU are deeply intertwined trading partners across goods and services.
- New U.S. tariffs over Greenland risk breaking trade predictability and invite fast EU retaliation via its "anti-coercion" bazooka.
Europe's 'Bazooka' Response Tool
- The EU's anti-coercion instrument lets it quickly retaliate when another country uses financial pressure to force policy changes.
- Measures include targeted tariffs and restricting companies like Meta or Google from operating in Europe after required negotiation attempts.
Credibility Is Central To Trade
- Sudden tariff threats damage credibility and predictability vital for trade relationships.
- Ethan Strube says ignoring rules makes future cooperation and rule-based trade much harder.