Balance of Power EU Expects US Tariffs to Stay
Apr 15, 2025
Erica York, Vice President of Federal Tax Policy at the Tax Foundation, and Eric Freedman, Chief Investment Officer for US Bank Asset Management, dive deep into the knotty issues surrounding US-EU trade relations. They discuss the stalled negotiations and the implications of ongoing tariffs on both economies. The conversation touches on how recent policies affect investor sentiment and market behavior. With fiscal challenges and geopolitical tensions looming, they reflect on the potential economic consequences and the importance of clear communication in navigating these turbulent waters.
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EU-US Tariff Talks Stalled
- The EU trade chief met U.S. officials but gained little clarity on tariff removal or U.S. demands.
- EU braces for tariffs on autos, steel, aluminum to remain, indicating prolonged trade tensions.
IRS Cuts Haven't Hurt Collections Yet
- Despite IRS staffing cuts, tax filing season revenues are on pace with last year.
- Long-term tax enforcement concerns exist, but immediate impact on revenue is minimal.
Tariffs Unlikely To Fund Tax Cuts
- Tariffs could raise $150-$170 billion in 2025 if maintained, but revenue is uncertain due to political and legal risks.
- Tariffs alone won't fund tax cuts and may harm the economy more than help.