re: US and EU agree on trade deal

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Untl America makes smaller cars there isn't going to be much of a dent in US cars sold in Europe. Same for Japan. Not ony do they prefer smaller cars but in many towns and villages US cars just don't fit.

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Size of vehicles is a real thing. I was hosting a bunch of diplomats for Bermuda one time and they were discussing the length and width requirements for imports there. It’s a limited amount of vehicles.

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Untl America makes smaller cars there isn't going to be much of a dent in US cars sold in Europe. Same for Japan. Not ony do they prefer smaller cars but in many towns and villages US cars just don't fit.

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Like how Toyota sells the tundra to the US market and not other markets?


You are either an ignorant bastard or have severe tds.

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Yep, but his lemmings will jump right over the cliff because Dear Leader said so.

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You do have TDS.

The money board going to continue to be wrong.

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Untl America makes smaller cars there isn't going to be much of a dent in US cars sold in Europe. Same for Japan. Not ony do they prefer smaller cars but in many towns and villages US cars just don't fit.

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Not sure why this got so many downvotes but for those unaware here is the list of the bestselling vehicles in europe first half of 2024:

Dacia Sandero, 143,596 (+16%)
Volkswagen Golf, 126,993 (+43%)
Renault Clio, 114,623 (+15%)
Volkswagen T-Roc, 111,381 (0%)
Peugeot 208, 107,097 (+1%)
Skoda Octavia, 102,945 (+25%)
Citroen C3, 102,304 (+50%)
Tesla Model Y, 101,181 (-26%)
Toyota Yaris Cross, 99,694 (+3%)
Toyota Yaris, 93,576 (+10%)
Peugeot 2008, 93,436 (+11%)
Dacia Duster, 89,435 (+3%)
Kia Sportage, 87,164 (+13%)
Opel/Vauxhall Corsa, 87,102 ( -18%)
Ford Puma, 83,972 (+9%)
Nissan Qashqai, 82,816 (+13%)
Hyundai Tucson, 80,948 (-2%)
Renault Captur, 80,778 (+4%)
Fiat Panda, 76,450 (+25%)
Volkswagen Tiguan, 74,675 (0%)
Fiat/Abarth 500, 72,026 (-20%)
Toyota Corolla, 70,701 (+15%)
Audi A3, 70,149 (+15%)
Volkswagen Polo, 67,125 (+3%)
Volkswagen T-Cross, 62,225 (+8%)

I know a lot of those people wont be familiar with, but the theme of the story is pretty simple - small hatchbacks with small engines dominate the market over there. Something america just really doesnt do, we seemingly moved on from wagons and hatchbacks for the most part a decade or two ago. Everything is now an SUV here and pretty much only subcompact and compact SUVs are popular over there, which we are making a lot more of these days (see Chevrolet Trax for example), but GM just sells something like that in one of their european owned brands like Opel which has better reputation over there.

In the end, the cars we want and get here are definitely way different than what they want and get there. And its mostly due to 1. How vehicles are taxed as well as fuel prices and 2. The practicality of said vehicle not only to fit families but be space efficient is old small roads/towns. Even if Ford tried to sell an F-150 with a small engine to be more tax efficient, nobody would really buy it because its just way too big to drive around in most places. In rural places it could potentially make it, but is that even worth Ford's time? They brought the F-150 lightning over to Norway like 1+ year ago and thats a country hell bent on moving everyone into EVs right now and you cant really find any sales figures on it anywhere which is usually a really bad sign.

The taxes can get really crazy there quick, for example in Belgium you are taxed when registering a vehicle on not only the engine size (they call this fiscal HP), which goes up every 200cc; but ALSO the engine actual power.

So even if you want to try and skirt around having large naturally aspirated engine to produce say 200hp at 2.4L I4, by making a turbo 1.5 I3 with the same 200hp, you are taxed STILL on the 200 horsepower on top of the engine size. It's crazy. They will find anyway possible to keep the power low and engine size tiny. They will tax based on CO2 emissions, and forget about any kind of affordable fuel anywhere basically. A lot of us cringe when we go to California and see $5/gallon gas prices but in lots of places around Europe it could easily approach like $8-9/gallon.

Because the DOW doesn't think anything will come of it like every other tariff lately.

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Why didn't the Dow go up with this news?

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I think a deal was pretty much baked into the market.
Now we move on to tech earnings and the Fed meeting.

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Same for Japan. Not ony do they prefer smaller cars but in many towns and villages US cars just don't fit.

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Prices have not increased due to tariff back and forth, deals coming together, and stock market at record highs.

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Prices haven’t increased yet because the tariffs haven’t fully taken effect.

According to Moody’s economic models—which are widely used by financial institutions—inflation is expected to rise to the mid-3% range by year-end. This is largely driven by a projected spike in the U.S. global inflation rate, which they estimate will climb from 2.5% in January 2025 to around 17% by the end of the year. They also forecast real GDP growth to remain below 2% through the end of 2026.

The Dow will probably continue to go down because the expectation of the deal was already in the prices. The Dow will go down a little each day for awhile until investors decide to buy.

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What about this agreement do you think necessitated the wild threats followed immediately by “pauses”? Could we not have accomplished the same thing with a simple “in 60/90/whatever days, the US will set a tariff of X% on your goods unless we come to an agreement prior to that date”?

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Because imposing the tariffs and then delaying to negotiate showed them he was serious, and th panic it caused them probably led to us getting a more favorable deal.

If he had only threatened tariffs they likely would have tested his threat anyways to see if he would actually do it

Just answer the question - how am I wrong?