Name: Trump’s DISASTER Tariff War, Shocks EU with 35% Tariff
Uploaded: 2025-07-19T22:49:54.000Z
Duration: 9 min 52 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Future simple

Donald Trump just imposed a 30 percent tariff on the European Union, and this will cost the United States trillions of dollars in the long run, and it will have devastating impact on the entire tech sector in the United States.

You will see US tech stocks tumble after this.

The imperative

This is the letter that Donald Trump has sent to the European Union.

It says that starting from August 1st, the European Union will be faced with a 30 percent tariff.

Even though that Trump has warned them not to retaliate, it's the European Union, the second world's largest economy after the United States, and they will have the power to retaliate to the United States, and it's the United States that will lose the most out of this trade war.

The claims that Donald Trump has made against the European Union are absolutely absurd.

If you look at the trade goods between the two countries, you will see that the European Union exports to the US 532 billion dollars, while it imports much less than that.

It leaves the countries with a 197 billion dollar deficit.

European Union is selling to the United States much more than it's buying from the United States.

And if you take it purely from this graph, it seems like everything that Donald Trump says is correct, and the United States has the chance to actually impose a 30 percent tariff so that we end the 200 billion dollar deficit.

Because when you trade, you don't simply buy goods.

Physical goods such as cars and steel are goods that are being traded between the two countries.

If you sell a financial service, it is not going to go under the trade in goods because it's a service.

If you sell Facebook ads to the European Union, that will be a service and not a physical good.

You cannot possibly touch a Facebook ad, but you know that it's a service that you provide for a fee.

That's why comparing trade and services, suddenly you realize that European Union buys from the United States 180 billion dollars worth of services than it sells to the United States.

And by looking at both of these numbers, suddenly you realize that the problem isn't as big as Donald Trump makes it look like.

Yes, there is a trade deficit of 90 billion dollars if you consider both of the trade in goods and the services.

However, if you consider the total trade between the two continents, which is at around a trillion dollars or more than that, 90 billion dollars is less than 10 percent of that.

And you can fix it by imposing very little tiny tariffs on some of the goods.

Yes, you might not fix it overnight, but in a matter of a year or two, it is possible to fix it.

Even if you actually look at it from this perspective, United States gains from this trade far more than the European Union, which is why this 90 billion dollar trade deficit isn't a big deal at all.

Now, first of all, do you see these companies?

And Facebook, Google, Amazon, and Apple entirely dominate the markets in the European Union.

China wanted to develop its own tech sector, so it blocked all the US companies, which allowed Chinese tech companies to dominate and take over entire China.

But that's not the strategy that the European Union followed because it wanted to integrate its economy with the United States and allowed US companies to entirely dominate the European market.

Do you think that the European Union cannot come out with a Google or a Facebook?

If they block US companies from the European Union, they can do that easily.

However, since it's a free trade between the two countries, it allows US companies to take advantage out of the US market, and because they have been in the market much earlier than the European companies, it allowed Amazon, it allowed Facebook, it allowed Apple to take over the market in the European Union.

So if there will be a total trade war between the two countries and the European Union will take a serious stance against US companies, it will hurt a lot of US companies.

Another claim that Donald Trump has made is that the European Commission has fined US companies, the tech companies, billions of dollars or sometimes hundreds of millions of dollars for violating privacy laws in the European Union.

Google probably was fined at around a billion dollars, Twitter was fined like 400 million dollars.

And that's because the United States and the European Union have two completely entirely different privacy policies.

And if you violate the policies of another country, you will be fined.

In fact, back in 2013, they tried to sign a free trade agreement between the two continents, which they called Transatlantic Investment Partnership.

The job was that we eliminate all the tariffs between the European Union and the United States.

Negotiation lasted for years until Trump became president in 2016, and he literally just cancelled everything, which is why there is no free trade agreement between the two continents.

If there will be a free trade agreement between the European Union and the United States, trust me, it's going to benefit the United States far more than the European Union, which is why the initiator of this trade agreement was the United States and not the European Union.

Secondly, if you look at the largest holders of US debt at the top of the list, besides the Asian countries such as Japan and China, you will instantly see Luxembourg that holds 424 billion dollars of US debt.

Then you see Belgium, which is a European country, it holds 375 billion dollars of US debt.

In total, European Union holds around 1.6 trillion dollars of US debt.

Yes, there is a trade deficit between the two countries, but these countries are making money in the United States and then taking that money and investing it back in the US economy, which allowed the US economy to grow much faster than the European economy.

It's actually great for the United States that there is a trade deficit because they are investing all the extra money back into the United States.

Now let me ask you a very simple question.

How much European debt does the United States hold?

Now, we don't have public data in order to confirm this, but the United States does not invest in foreign debt because the United States has the global reserve currency and it allows it to issue debt in its own currency and the US does not have to invest in all of these foreign countries for any kind of extra income.

Because if the US wants extra income, it can simply issue that debt.

Thirdly, United States is in a competition with China.

So clearly, the United States has the advantage.

But if you want to beat China that is rising, then you need very close allies.

And the closest ally of the United States since 1940s has been the European Union.

Back in the days, it wasn't the European Union, it was a bunch of different European countries, but eventually they became a European Union.

Today their GDP stands at 20 trillion dollars.

So by having a very close ally, you have a chance to beat China because you have a much bigger market, you have a much bigger economy.

So China has a GDP of 20 trillion dollars with a population of 1.5 billion dollars.

And you have a Google alternative in China that will make far more money because there are far more people in China.

Now Google, which is a US company, can compete with China because they can also leverage the European market since the European Union decided to give up its entire tech sector and just handle it to the United States.

And the US companies can dominate that market and further profit from that, which is another reason why the US stocks are growing tremendously compared to the stock market in any European country.

European Union took it as far as imposing almost 45 percent tariff on EVs that come from China.

While there is a standard 10 percent tariff on the EVs or any kind of cars that come from the United States.

European Union has also imposed a 40 percent tariff on solar panels that come from China.

So are different kind of tariffs that the European Union impose on China and not on the United States because the European Union is on the same team with the United States.

And if there are any kind of differences, you don't destroy 80 years of trade and commerce and relationships that you have built just because there is a small tiny trade imbalance between you.

But rather you sit down, you're working out, you come up with a very long term plan where you can fix it.

But even that is not a problem as we have seen.

Because European countries are investing back into the United States.

They're investing in the US mortgage-backed securities to bring down your mortgage rate.

They're investing in the US stocks, which allows the stock market in the US to grow, which allows these companies to hire people in the United States.

Which is why if this relationship is going to be destroyed, it's the United States that is going to be a very heavy price.

Because the European Union can simply turn around to China at any moment they want.