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
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.
Office of Management and Budgets (OMB) Director Russ Vought appears on CNN to discuss the problems noted with the Federal Reserve (FED) as the organization viewed their ‘independent’ status as meaning beyond accountability. The FED has been operating without any oversight until President Trump and Russ Vought began a baseline review of how they spend taxpayer funds.
As noted by Director Vought, the FED can have independence and yet they must be held accountable to the American people. President Trump is that accountability piece and the FED were not familiar with scrutiny. They are now.
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Russ Vought also appeared on Face the Nation to receive questions from the insufferable and ever-pontificating Margaret Brennan. Video and Transcript Below:
[Transcript] – MARGARET BRENNAN: We begin today with the director of the White House Office of Management and Budget, Russell Vought, welcome to ‘Face The Nation.’
DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET RUSSELL VOUGHT: Thanks for having me.
MARGARET BRENNAN: There’s so much to get to with you. Let’s start on what’s going on with the Federal Reserve. If you take the president at his word, he does not intend to fire the Federal Reserve Chair, Jerome Powell- though he’s still criticizing him. What is the President seeking in a successor when his term ends in May 2026?
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:
The Japanese essentially did not want to face a 25% tariff on automobiles exported to the USA. At the same time, they did not want to permit full USA access to several sectors of their market. The solution is quite remarkable.
Japan agrees to be the bank, to essentially finance any national security priority of President Trump to the tune of $55o billion. In return, Japan gets a 15% tariff on automobiles, and 10% return on the profit of the ¹business they finance in the U.S. Japan is essentially purchasing a lower tariff rate.
PRESIDENT TRUMP – “We just completed a massive Deal with Japan, perhaps the largest Deal ever made. Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits. This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it. Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%. This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan. Thank you for your attention to this matter!”
Commerce Secretary Howard Lutnick explains:
EXAMPLE: President Trump wants generic drug manufacturing in the USA. U.S. company ‘Main Street Drugs’ agrees to build a $100 billion manufacturing plant. Japan finances the building and company creation. Main Street Drugs owns and operates the business, keeps 90% of the profits, Japan gets 10%.
Trump (USA) has $450 billion in financing left to spend on the next priority, perhaps a railroad connection or transit system.
I’ll repeat it as much as needed, until it sinks in.
The U.S-Canada trade deal status is simply a no-brainer. President Trump will answer questions about Canada and tariffs, he’ll put people into seats to discuss trade with the Canadian delegation, and he’ll give every outward appearance of being favorable to Prime Minister Mark Carney…. BUT…
In the background, Trump is simply waiting for the USMCA timeline to trigger a renegotiation. President Donald Trump is ambivalent to the trade partnership with Canada. This moot-status reality is why there’s no substantive engagement.
‘No deal’ -until USMCA redo- is a win for President Trump.
For some bizarre reason that I simply cannot fathom, almost every Canadian politician seems entirely oblivious to this reality. Instead, Canadian Trade Minister Dominic LeBlanc and Mark Carney’s chief-of-staff, Marc-André Blanchard are once again coming to DC to ride their bicycles in slow circles at the bottom of the White House driveway while staring in the windows.
An article in Politico notes the Canadian premiers are now accepting the August 1st deadline will pass without any agreement, and the 35% reciprocal tariffs on non-USMCA products (meaning a lot of stuff) is going to trigger.
Literally, everything from Canada that has a non-USMCA component is going to be tariffed. Think about all the stuff from China, Asia (writ large) and Europe that Canada assembles for finished goods. All of that stuff will be subject to the tariffs.
Following an oval office meeting and later discussion with Philippine President Ferdinand Marcos, President Trump announced a trade agreement has been reached.
President Ferdinand Marcos, of the Philippines, is just leaving the White House, with all of his many Representatives. It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs. The Philippines will pay a 19% Tariff. In addition, we will work together Militarily. It was a Great Honor to be with the President. He is Highly Respected in his Country, as he should be. He is also a very good, and tough, negotiator. We extend our warmest regards to the wonderful people of The Philippines! (link)
Additionally, the White House has announced a trade agreement with Indonesia for a similar 19% tariff rate.
In 2018, Canadian Prime Minister Justin Trudeau relied heavily on House Speaker Nancy Pelosi for assistance when the U.S. and Mexico constructed the majority of the USMCA trade pact. Today, Canadian Prime Minister Mark Carney takes the same approach.
PRESS RELEASE – “Today, the Prime Minister, Mark Carney, met with a bipartisan delegation of United States senators in Ottawa. The Senator for Oregon, Ron Wyden, the Senator for Alaska, Lisa Murkowski, the Senator for New Hampshire, Maggie Hassan, and the Senator for Nevada, Catherine Cortez Masto, were present.” (more)
The 35% tariffs against Canada are scheduled to go into effect on August 1st.
We are approximately 10 days away from the baseline and reciprocal trade tariffs taking place on August 1, 2025. The U.S. economy is strengthening; inflation is not a factor, and the existing tariffs are bringing in a tremendous amount of revenue.
The most difficult trade deal to make is with the European Union as Secretary Bessent notes. It is unlikely that any trade agreement with the EU will be reached because the EU has all the benefits and no desire to lose their status (ie. Marshal Plan).
White House Trade and Economic Advisor Peter Navarro takes a well deserved victory lap on the latest U.S. consumer sales news. The Census Bureau report, yesterday, highlighted that consumer sales remain strong at +0.6% – significantly higher than all economists forecast [DATA HERE].
Retail sales growth is important, because approximately two-thirds of the U.S. GDP growth is driven by consumer sales. With inflation low, retail sales high, and with a previously reported drop in U.S. imports, the ¹second quarter GDP is likely to be much stronger than anyone previously predicted. Thus, Peter Navarro is leaning forward against the naysayers.
This is essentially a repeat of the 2017/2018 economic outcome from President Trump’s first term in office. The tariffs, which are applied to the ‘cost’ side of the dynamic, are mostly being absorbed by major producing nations who are reliant upon export to the U.S. market. Simultaneously, the tariffs are generating income – essentially exfiltrating foreign wealth and returning those funds to the USA; a complete reversal of the rust-belt dynamic. WATCH:
What Peter Navarro outlines is the core of MAGAnomics. This is also the baseline for our CTH assembly in support of economic nationalism, which is why we ended up in conflict with the Chamber of Commerce Republicans.
Tariffs are a tool to leverage reciprocal trade, and as long as nations like China continue taking measures to subsidize their exports, the tariffs simultaneously take wealth (those subsidies) from Beijing and return it to the USA.
This reality has always been the model we predicted would be successful for Americans, and I will remind everyone that ONLY DONALD TRUMP could deliver this MAGAnomic program. Everything else, Epstein, Musk, etc. is chaff and countermeasures deployed by both Democrats and Republicans in an effort to take back control of the money flow.
