The Rest Is Money 195. Why The EU Accepted A Raw Deal With Trump
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Aug 3, 2025 
Mike Bird, Wall Street Editor for The Economist and co-host of Money Talk, dives into the complexities of global trade deals under the Trump administration. He discusses the implications of hastily put-together agreements and the $600 billion energy deal with the EU. The conversation reveals concerns about new tariffs and their unpredictable effects on consumers and businesses. Bird critiques the nuanced relationship between the US and Europe regarding defense spending and trade dynamics, shedding light on how tariffs shape both markets and political landscapes.
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Trump's Unconventional Tariffs Strategy
- Trump's tariff approach deviates from past administrations with less detailed negotiation and more abrupt implementation.
- The US introduced extensive tariffs sooner than expected, causing initial market panic before reductions and exemptions followed.
EU-US Tariff Deal Lacks Retaliation
- The EU-US trade deal settled on 15% tariffs that may seem less severe than Trump's threat but are unfavorable compared to January's prior rate.
- The deal lacks EU retaliation, benefiting European consumers but favoring producers less.
Car Tariffs Differ By Market
- Automotive tariffs differ: the EU faces a flat 15% rate, while the UK faces 10% on limited quantities.
- UK's car exports to the US are niche luxury models, so tariff differences have less impact than mass-market EU exports.