President Donald Trump nabbed a major win over the weekend when he announced a trade agreement with the European Union that would slash the rate of tariffs down to 15 percent.
While not the fabled "90 deals in 90 days" that his trade adviser Peter Navarro had pledged when Trump initially paused his "reciprocal tariffs," it was still a fairly big deal given that the European Union is the biggest trading partner of the United States.
And last week, Trump announced the "largest TRADE DEAL in history" with Japan. And a few months ago, he announced a multibillion-dollar deal with the United Kingdom. All of these countries or blocs are massive trading partners.
But it didn't lead to the euphoria on Wall Street that Trump likely wanted. As of the stock market's closing bell on Monday afternoon, the S&P 500 barely budged and the Dow Jones Industrial Average dipped slightly.
It might be because Americans will continue to pay more for products than they did before the deal. But one analyst had another thought about the "biggest deal ever," as Trump alternately put it, landing with a thud.
"I also think that the markets have taken TACO a bit too seriously," Tara Hoops, director of economic analysis at the Chamber of Progress, told The Independent.
Referencing the acronym for "Trump Always Chickens Out" — where he has gained a reputation for talking a big game regarding imposing tariffs, or in demanding ceasefires in Ukraine and Gaza, and then backing down hours or days later — Hoops said, Wall Street is in a mode "where no one is actually believing the frameworks that are coming out."
For all of Trump's talk about how the reciprocal tariffs might lead to a renaissance of American manufacturing, Hoops flagged a fatal flaw: American auto manufacturers will pay 50 percent tariffs on steel and an additional 25 percent on other automobile parts.
"Meanwhile, the same people could just go to the EU and pass on to the consumer," Hoops said. "So the only person who is winning here might be Trump, because it seems to him that he has a deal, but the consumers are the ones who have to pay more for these goods."
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