EU takes aim with retaliatory levies after Trump’s 30% tariff threat

(Originally published July 15 in “What in the World“) The European Union is weighing retaliatory tariffs against the United States.

The EU’s latest move comes in response to Trump’s threat last week to impose a 30% tariff on U.S. imports from the EU. In response, Brussels is considering retaliatory tariffs on €72 billion of U.S. airplanes, cars, and food. While Kentucky bourbon will be a likely casualty, the biggest hit would be to the EU’s imports of Boeing aircraft.

Trump’s tariffs have pushed the average effective U.S. tariff rate to 16.6% from just 2.5%, according to Yale University’s Budget Lab. Short-memoried investors have contented themselves in the fact that they haven’t ended up as high as Trump was threatening. Yet economists warn that, while the economy has so far proved resilient, Trump’s tariffs will eventually prove a tipping point.

The Trump administration is meanwhile working to dismantle the American intellect. Trump’s newly passed budget bill reduces federal lending for higher education, which will force students to take on more expensive, private debt. The Supreme Court has also approved Trump’s efforts to gut staffing at the Education Dept., which he has slated for elimination.