The World Files for Economic Divorce from America (Krugman)

[usonian]

https://paulkrugman.substack.com/p/the-world-files-for-economic-divorce

On Monday India and the European Union concluded negotiations on a breakthrough free trade agreement. Ursula von der Leyen, the president of the European Commission — the EU’s executive branch — called it “the mother of all deals.” That description is somewhat over the top. Yet the agreement is in fact historic and important in ways that go beyond economics. For it shows that the world is becoming ever more estranged from an erratic, abusive United States. In other words, other countries are moving, step by step, toward an economic divorce from America.

Unlike Donald Trump, who thinks of international trade as a zero-sum game, the Europeans and the Indians understand that a free trade agreement between them is a very good deal for both parties. They are two very big economies. Although Trump administration officials like to sneer at European economic performance, the economy of the European Union is roughly the same size as ours. And India, which a few decades ago had a huge population but a small economy, has made massive economic strides and is now a major player on the world economic scene:

And the two economies complement one another. Europe will face much lower tariffs on its exports to India of goods ranging from cars to olive oil. India will gain access to the European market for its exports of labor-intensive products:
A table with text and numbers AI-generated content may be incorrect.

Furthermore, this is a real trade deal, not some vague expression of intent. It involves measurable, enforceable reductions in tariff rates, regulation of services, and more. This is in striking contrast with the fantasy international “deals” Donald Trump claims to have negotiated. In the Trump deals, other countries have offered vague promises to invest in America – promises that few observers expect to be fulfilled – in return for Trump’s promise not to impose destructive tariffs. Tariffs, I should say, that American consumers, American businesses, and American investors will pay and are overwhelmingly against.

There will be a quiz.
There's a great music video on that post.
A "Ray" of sunshine.