35% TARIFF COMING !!!!

Donald Trump is putting even more pressure on the European Union after Brussels bowed its head and agreed to a trade deal with 15% tariffs on EU imports (only a 5% reduction from the initial 20% tariffs Washington wanted). With just 48 hours to go before the new global tariffs come into effect—the fine print of which is still unknown because no agreement has been made public—the US president has threatened the Europeans with 35% taxes if they don't keep their promise to invest $600 billion.

European Commission President Ursula von der Leyen committed that European partners would invest $600 billion in the US economy. But the reality is that the EU cannot force either companies or private shareholders to do so. Meanwhile, Trump talks about the pact as if it were some kind of guarantee that he will receive the investment.

The reality, obviously, is much more complex. It's not that the EU automatically transfers this amount to Washington, but rather that it's an expenditure on energy products that Brussels has committed to making subject to a series of conditions.

The tariff agreement reached by von der Leyen with Trump on July 27 includes a single 15% tariff on European goods in exchange for Brussels reaching a series of commitments: European purchases of US energy products worth $750 billion worth of artificial intelligence, a $600 billion investment in the US economy, and an increase in the purchase of military equipment from the United States. Both the $600 billion Trump was talking about and the $750 billion in energy are in question, since the European Commission cannot force companies and private shareholders to make these purchases.

Since there's still no black-and-white agreement, with all the loose ends tied up, each party is interpreting the agreement in its own way. And Trump seems to assume that the $600 billion will be some kind of payment, when nothing of that kind has been said

It is an onerous commitment, not just words. Typically, EU investments in the US run at about $200 billion annually. This provision essentially doubles that amount. This is money that would not be invested in Europe to help Europeans. It will be invested in the US to bolster US growth. Yes, there are no specifics at this time, but the presence of this clause provides leverage for the US to exert pressure on the EU to implement certain elements of this commitment. Let's not kid ourselves!!

Donald Trump will put a surcharge of up to 35% on all products exported to the United States if the EU does not fulfill its $600 billion investment promises. The United States is demanding a timetable for real investments and follow-up audits. Trump is loud and clear that he will not accept "any virtual or delayed investment." And in his sights, beyond general taxes, one sector is trembling: pharmaceuticals. The threats are precise and striking: if the promised investments are not honored, the entire European pharmaceutical industry could face a tariff response. Europe has promised $600 billion in investment; Trump is demanding proof in dollars and factories, not an empty commitment.