Most political pundits, including economists and “on-air” business analysts, have gained their experience through researching trends, gathering information and assessing data. Few if any have made their financial mark actually running a business, making payroll, dealing with vendors or working with clients and customers.
Thus when the president announced he was imposing tariffs on aluminum and steel imports, the European Union threatened to retaliate, sending both the “on-air” business analysts and the political establishment into overdrive. They predicted a brutal “trade war” and condemned the president as “reckless.”
Even EU Trade Commissioner Cecilia Malmstrom claimed that the 28-nation bloc would be forced to impose “rebalancing measures” if the president continued his tough talk of placing tariffs on automobiles.
Adding, “If the U.S. would impose these car tariffs that would be very unfortunate.”
Moreover, the mainstream media was ready to declare the demise of our American economy – simply because the stock market was doing what it usually does, going up and then going down.
Thankfully, TV economists and political pundits aren’t running our economy – a successful billionaire businessman turned president is. This president, unlike his predecessors, understands “brinkmanship” when it comes to business, and more importantly “The Art of the Deal.”
On Wednesday, amidst the bluster of tariffs and trade wars, European Commission President Jean-Claude Juncker arrived at the White House and extended an olive branch to President Trump with two offers for a trade deal that would hopefully satisfy the White House.
The astounding offers presented by the EU are either to “eliminate tariffs on cars for all trading partners or create a limited free trade agreement between the U.S. and EU on industrial goods.”
The president opted for the latter, securing an agreement from the EU to purchase more American soybeans and liquefied natural gas.
The two leaders also announced that they would begin “to work together toward zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods.”
The Dow Jones Industrial Average jumped on the news, which was seen as a major win for Trump’s gamble of using tariffs, tweets, and threats to extract concessions from U.S. trading partners.
Even Fox’s own Trump basher, Neil Cavuto, had something positive to say regarding the president’s negotiating skills.
“This is a dramatic, stunning development, on trade … The Europeans, it might be deemed, have blinked. They have made concessions to President Trump … to meet the president’s demand to lift tariffs that are already in effect against the European Union. This is a major win for President Trump. It is a major concession on the part of the European Union … A few hours ago, they were pooh-poohing — all the major publications … for the President of the United States, a win, and a big one, economically.”
Next on the agenda for the president is NAFTA, deemed as the “worst trade agreement ever made.”