Trump writes:
Numerous European Countries have been discussing the imminent
implementation of a Digital Services Tax on American Companies. Some of
these Countries are close to actually doing this. Please let this
statement serve to represent that any Country that imposes such a Tax
will immediately be met with a 100% TARIFF on any and all Goods sent to
the United States of America. This TARIFF will supersede Trade Deals
made with the Country, whether implemented, signed, or not.
Additionally, the 100% TARIFF will be immediately imposed, if they
proceed. Thank you for your attention to this matter.
You have to wonder what the megacap tech companies offered Trump in exchange for him immediately and relentlessly fighting for this issue from the very get-go.
And, of course, we know how it ends as Europe always rolls over.
I maintain that the biggest surprise of last year was Europe immediately caving when the US launched tariffs. It was the only bloc with the size to fight back. In fact, I would argue that the whole point of the EU was to combine and be big enough to be in a position to fight back. Yet they caved in something way beyond any of the Trump TACOs.
Separately, Trump also wrote about Iranian attacks on ships but the “foolish violation” rhetoric is a reminder that he’s desperate to make a deal and get out of this war.
The Islamic Republic of Iran shot at least four One Way Attack Drones at
Ships transversing the Strait of Hormuz. One of the Drones solidly hit
the upper deck of a large and very expensive Cargo Carrying Ship. Damage
was done, but the Ship was able to proceed on its way. We knocked down
three other Drones. Obviously, this is a foolish violation of our
Ceasefire Agreement.
Eyes will be on Israel-Lebanon in the days ahead as a precondition for a deal.
Update: On that note, Axios’ Barak Ravid reports “Israeli and Lebanese officials tell me that an announcement is expected today of a framework agreement between the two governments after four days of negotiations in Washington.”
