Trade Talks Escalate as ‘Liberation Day’ Approaches

Overall, despite the continued tariff distractions, after “Liberation Day,” I expect economic optimism to rise steadily in the upcoming months.

President Donald Trump signs executive orders raising tariffs on products made in foreign countries during a “Make America Wealthy Again” event in the Rose Garden at the White House on April 2, 2025. Chip Somodevilla/Getty Images

Commentary

In North America, cooler heads seem to be prevailing, with new trade agreements anticipated with both Canada and Mexico as “Liberation Day” (April 2nd) approaches. The European Union (EU) is being more difficult, however, partly due the fact that the EU does not have strong or unified leaders. The strongest EU economies – Germany and France – have weak ruling coalitions under French President Macron and German Chancellor Merz. President Trump has made it clear that the German auto industry is welcome to move their manufacturing plants to America, where they can benefit from: (1) electricity that is one-fourth the cost it would be in Germany, (2) cheaper labor costs, (3) multiple states fighting for their business, (4) work VISAs for their employees who want to move to America, and (5) less oppressive regulations.