Tariffs, trade-war and moving out of the US-cloud
April 2nd is what Trump calls liberation day. It is the day when he introduced Tariffs on almost all countries, including some countries with no inhabitants. While this is already interesting, it is even more interesting to see which countries are not on the list. These are Russia, Belarus, and North Korea. Authoritarian regimes with leaders that Trump is looking up to. The same countries that voted on February 25 against the UN resolution on Ukraine. Coincidence? I think not! All this means that the US, under the leadership of Trump, has switched sides on the world stage.
How did Trump come up with these tariffs? What did he base them on? It is as simple as it is stupid. He is looking at the US imports and exports with every country. If the US imports more value than it exports than there is a trade deficit. The tariffs are based on the percentage of that deficit divided by the imports, with a minimum of 10%. What about when a country imports more from the US than it exports to the US? This is good for the US, right? Would the US then pay a tariff to that country? Well, no, they get screwed by the same minimum of 10%.
The strangest thing however is that Trump based the import and export only on goods, not on services. The US exports a lot of services, if you look at Microsoft (365, Azure), Google (Workspace, Cloudcompute), and Amazon (AWS), they have a trade surplus. I don't have the exact figures, but I expect that for Europe the trade deficit of goods will be cancelled out by the trade surplus of services.
Thinking about services. Now that Trump started this trade-war, now that the US is not a safe harbor anymore for European data, it is time to migrate those services to European alternatives. Governments and companies that are dependent on those services should move out of the US cloud. There are plenty of good (open source) alternatives to choose from. There are datacenters and cloud providers ready to deliver those services. If Europe invests in European cloud then we will not only be sovereign but we will also enable European businesses to grow and invest in improving those services. Services which are now sometimes a little bit behind the current US offerings. Let's break this vicious circle and start spending European.
Make Europe Great Again!