The global economy is currently drawing comparisons to the TV series “House of Cards,” reflecting a landscape fraught with unpredictability and uncertainty. This comparison arises amidst expectations that the US administration, under President Donald Trump, will threaten Europe with new tariffs in April. As Trump’s trade policies enter their second stage, there is a focus on leveraging these policies to finance domestic tax cuts. Meanwhile, the European Union faces significant challenges, with Germany’s upcoming snap elections in two weeks poised to play a crucial role.
The political climate in Germany is experiencing a shift, traditionally known for its stability within Europe. The far-right Alternative for Germany (AfD) party is polling strongly, which could have significant implications for the election outcome and the broader European Union. The EU, despite being larger and more powerful than Canada or Mexico, may find it difficult to unite against assertive US trade policies, further complicating the situation.
The European Commission holds the responsibility for coordinating retaliation tariff measures. However, the unity needed among European countries and governments to make decisions on new purchases of certain US products remains elusive. In the past few days, the first round of tariff tensions unfolded like a storm that ultimately calmed into a gentle breeze, yet the future remains uncertain.
As 2023 begins with political turbulence and unpredictability, the EU's ability to mount a cohesive defense against US trade policies is under question. While tariffs are seen by some as a potent tool of foreign policy, their use remains contentious. The need for European countries to stand united is more critical than ever.
In addition to political and economic concerns, the cryptocurrency market has shown signs of recovery. Bitcoin's price has rebounded slightly, trading above $98,000 at the time of writing. This recovery may be partially supported by Eric Trump, who has encouraged adding Bitcoin to their family-backed crypto platform World Liberty Financial's portfolio.