I think many of us really like Hungarian Prime Minister Viktor Orban. He’s not generally a man who pretends things amid the EU coalition. Orban says things clearly, just like Trump.

[SOURCE]

When Orban notes he will not sign a joint EU statement on the Trump/Putin summit because it “sets conditions for a meeting to which leaders of the EU were not invited,” he certainly hits the proverbial nail.

The hubris amid the EU collective is quite remarkable.

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The intellectually honest political watcher knows that overall Ukraine represents the largest international money laundering operation to shift wealth from taxpayers to the politically connected institutions, since COVID-19.  The money is the motive to continue the conflict.

With President Donald Trump and Vladimir Putin scheduled to meet in Alaska for a summit to negotiate a ceasefire, German Chancellor Friedrich Merz quickly organizes a meeting between EU leaders and the U.K to figure out how the keep the war going.

As the industrial capital of the EU, Germany has a lot at stake given the nature of their contracting economy. The EU military industrial complex is centered around the nation Merz represents. There are trillions at stake.

BERLIN — U.S. President Donald Trump will join European leaders including Ukrainian President Volodymyr Zelenskyy for an emergency virtual summit on Wednesday.

The call, organized by German Chancellor Friedrich Merz, comes ahead of Friday’s summit in Alaska between Trump and Russian President Vladimir Putin on the war in Ukraine.

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The financial pundits are putting their customary spin on it, but overall as the reciprocal tariffs begin, things are going well.

China’s trade surplus with the US declined to USD 23.74 billion in July, down from USD 26.57 billion in June, as both exports and imports with the US declined, falling 21.7% and 18.9%, respectively. {LINK}

For Germany, exports to the U.S. slid 2.1% to 11.8 billion euros, the third consecutive monthly decrease and the lowest value since February 2022, Destatis said. They were 8.4% lower than the same month last year. {LINK} However, since imports from the U.S. increased at the same time, this narrowed Germany’s trade surplus in goods with the U.S.

Swiss President Karin Keller-Sutter left Washington empty-handed on Wednesday after a hastily arranged trip to avert a crippling 39% tariff on the country’s exports to the United States, its biggest market, three sources familiar with the matter said. {LINK}

Reciprocal tariffs begin today. “Before Thursday, virtually every country’s goods were subject to a minimum 10% tariff. Now rates vary substantially from country to country.”

The highest rates imposed are on goods from Brazil (50%), Laos (40%), Myanmar (40%), Switzerland (39%), Iraq (35%) and Serbia (35%).

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Commerce Secretary Howard Lutnick describes some of the details within the new U.S-European trade agreement.

As noted, the $600 billion in regular trade products exported by the EU to the USA market will be subject to a 15% reciprocal tariff.  This approach effectively ends the Marshall Plan, sets the trade terms to balance and should generate approximately $90 billion in revenue to the U.S. treasury.

U.S. tariffs on cars and auto parts are being reduced to the baseline 15 percent — a level that matches the deal notched earlier this month by Japanese automakers. In exchange, the EU has agreed to lower its car tariffs from 10 percent to zero, trade spokesperson Olof Gill said.  The German companies are angry though, because the 25% tariff still applies to Mexico. So, German autos manufactured in Mexico (massive prior investment) will come to the USA with a 25% tariff.

In addition to the EU agreement to open their markets to U.S. products, private companies within the EU have committed to $600 billion in direct investment within the USA.  Additionally, the EU will purchase $750 billion in U.S. energy products and with the NATO commitments previously agreed significant military purchases are anticipated. That is a major purchase agreement of $250 billion each year for the next three years.

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Congratulations America!

Thank You President Donald J Trump, U.S. Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick.

Enjoy the golf.

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The Marshall Plan is OVER!

Okay, this is a very big win.  EU Commission President Ursula von der Leyen outlines some more details of the U.S-EU trade agreement.  The parameters fall similar to the Japanese deal, without the banking aspect.

The EU will face (and accept) a 15% tariff rate for most exports to the USA including autos, that’s huge, even with some zero-for-zero tariff sectors outlined.  The primary motivating factor was to avoid the 35% tariff rate scheduled for August 1st and provide the EU corporations with certainty in their tariff rate as applied by the USA (15%).  WATCH:

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This is almost full acquiescence to President Trump.  WATCH THE VIDEO

Ursula has the sads.

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President Trump and EU Commissioner Ursula von der Leyen have apparently come to terms around the broad outlines of a U.S-EU trade agreement.

The EU will commit to purchasing $750 billion in energy products.  The EU will commit to investing $600+ billion in direct U.S. industries.  The EU will commit to purchasing their NATO military hardware from the USA ($500+ billion likely).  The EU will open up all markets to USA products without tariffs.  The EU and U.S. will both carry a 15% auto tariff for imports.  WATCH:

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I’m all about the broad outline described in the video above, but I also want to see the details.  If what President Trump said about all EU markets being open is accurate, it sounds like the Marshall Plan is over

Canada will not be happy; Europe gets a deal – Canada gets a cold shoulder.

Also, with U.K, Japan, ASEAN and EU trade agreements complete, President Trump is likely to begin focusing on the USMCA (Canada and Mexico) sooner than later.  Two bilateral trade agreements will likely replace the USMCA.

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While President Trump visits his golf courses in Scotland, he will also be conducting business on behalf of the USA by meeting with trade partners from both Great Britain and Europe.

This morning USA time, President Trump is scheduled to meet with EU Commission President Ursula von der Leyen, at approximately 11:30am ET.  Livestream Links Below:

UPDATE: Video Added

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President Trump announced on Truth Social a baseline tariff rate of 30% for both the European Union and Mexico.  Other sector specific tariffs still apply.

The EU rate is interesting in that the 30% rate is lower than the Canadian rate of 35%, yet the EU rate exceeds the current ‘chicken tax’ rate historically applied to imported SUVs and Trucks.  Strategically, the 30% tariff rate on Europe is a major incentive for various EU sectors to shift manufacturing into the USA.

Without a formal declaration of the end of the Marshall Plan, the reciprocity rate of 30% for all EU imports also equalizes the transatlantic trade benefit.  It will be interesting to see how the EU responds, given any retaliation could be added to the existing baseline.

Canada is currently trying to organize a trade agreement with the EU, in the hopes of positioning themselves toward the transatlantic group as they were toward the transpacific group (vis-a-vis China).

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CNN state media narrative engineers (think State Dept. in all things CNN) are running with a story to promote a new book by Josh Dawsey (Wall Street Journal – Author), Tyler Pager (New York Times – Author), Isaac Arnsdorf (Washington Post – Author) where they write about an audio segment by candidate Trump telling NY donors how he threatened Russian President Vladimir Putin and Chinese Chairman Xi Jinping.

The leaked audio is essentially unremarkable as President Trump has told this story several times. However, the background context is more interesting when we consider the motives of the WSJ, NYT and WaPo. Here’s the segment:

The WSJ is against President Trump based on economics; WSJ representing Wall Street. The NYT is against President Trump based on DHS/DOJ domestic opposition from within DC. The WaPo is against President Trump based on the CIA position and larger intelligence community. None of the motives within these outlets are challenged by the intellectually honest political observers.

So, what’s the play here?

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