On Sunday, President Trump struck what is touted as the largest trade deal in history with the European Union, and it might have left many economic pundits feeling a bit egg on their faces.
Since Trump’s announcement of what he called “liberation date” on April 2, he faced predictions of economic doom and gloom from economists and Democrats alike. They argued that his tariffs would lead to disaster, naming a myriad of threats: trade wars, recessions, stagflation—the list goes on.
Clearly, they believed someone like Trump couldn’t possibly be right, primarily because he stood against standard economic principles.
But as it turns out, this thoughtful collective of experts may have gotten it wrong.
Trump imposed a preliminary 10% tariff on imports from countries intending to trade with the U.S., which he termed a “declaration of economic independence.” Recently, he ramped up talk about potentially slapping a 145% tariff on China, an idea that seems to have escalated without real negotiation.
Treasury Secretary Scott Bessent indicated that tariffs are expected to rake in $300 billion this year, with projections of trillions potentially following to address national debts.
Additionally, Trump hinted at providing Americans a test run of their money next year—perhaps offering $1,000 or $2,000 checks to boost the economy. This is on top of promises for $5 to $6 trillion in direct foreign investments into the U.S.
Within his inner circle, there are some who have taken to calling this approach “reparation.”
It’s a win-win
Looking at it from this perspective, Trump’s bold moves in global trade seem beneficial for both parties involved. He projects confidence in America’s strength and appears unafraid to wield it for national gain.
Even Ursula von der Leyen, president of the European Commission, expressed relief after lengthy negotiations with Trump at his extravagant Turnberry Golf Resort in Scotland. She left the meeting having agreed that Europe would impose 15% import duties on a range of goods and promised to invest hundreds of millions into the U.S., along with buying $750 billion in American energy products.
After a deft negotiation led by Secretary of Commerce Howard Lutnick, Trump finalized the agreement before 7 PM.
Observers at the trade conference noted that Trump possesses an uncanny ability to sense where others stand economically.
“You have a female president who is very brilliant, very talented in what she does,” Trump remarked, complimenting his trading partner Ursula during an interview overlooking the Irish Sea while recording for his “Podforce One” podcast. “Our teams are both good, and let’s face it, we didn’t gain much from previous dealings.”
He firmly believes this agreement is advantageous for everyone and has a potential uniting effect globally.
Turning attention to China, Trump expressed interest in pursuing contracts after dealing with Japan, the UK, Indonesia, and the Philippines—all nations supportive of the U.S. Bessent was in Stockholm continuing negotiations with China over the weekend, while a group of South Korean trade negotiators arrived at Turnberry late that night.
“We’ve outsmarted all of us.”
Surprisingly, even some of Trump’s harshest critics, like Wall Street economist Torten Sloek, are starting to acknowledge that the president might have outdone everyone amid this backdrop.
Trump doesn’t seem to expect accolades for his actions; in fact, the narrative surrounding his two-term presidency often revolves around clutter and distraction, as even questions in press conferences manage to tie back to other controversies.
In one such Scotland press conference, a journalist suggested that Trump’s eagerness to finalize the EU deal might have been an attempt to overshadow the Epstein scandal. Trump’s response was dismissive: “Yeah, you must be kidding.”
Despite facing challenges such as accusations of collusion with Russia and the tumultuous pandemic, Trump claims substantial successes during his presidency. Touting accomplishments like border closures, the defeat of ISIS, and historical economic growth, he remarked on low unemployment rates for minority communities.
While he rolled back regulations from the Paris climate agreement, unleashed U.S. energy production, and appointed three Supreme Court justices, he remains skeptical about Joe Biden’s approach to reversing many of his policies.
In discussing trade and peace talks involving nations like Cambodia, Thailand, Rwanda, and India-Pakistan, Trump admitted a touch of anger regarding perceived obstruction during his first term by former President Obama.
“But in the end, we won.”
Although he stands by the notion that the Russian allegations did not destroy his initial term, he expressed frustration over how they clouded perceptions. “We had an incredible first semester,” asserting that the experiences ultimately resonate with the public now.
He noted, “People understand that, people understand that now.” Like the boy who cried wolf, he believes that many now see through the narrative of his detractors, labeling them in unflattering terms.
“These are losers,” Trump stated. “You know, I’ve beaten them for 10 years. It’s all just part of the game.”
In the end, Trump maintains that winning is its own reward.
