So I have spoken with a EU politician and he said that the Trump administration staff have mentioned about some of the possible terms under which the EU might avoid tariffs.
Seem that Trump wants the EU to also put tariffs on china in that case the US might go back to a free trade agreement with the EU with some exemptions (maybe leaving some tariffs only on key industries). The EU would also need to drop all trade barriers with the US and commit to buy more US goods and weapons to balance the trade.
Musk said he sees free trade with the EU in the future too.
EU is probably the only area US tech companies really care about as the EU could put high tariffs on ad revenues generated from eu viewers on Facebook, x, Google, etc...
While china already banned all those companies from operating in china a long time ago.
I wonder if they could extend the same terms to other countries like Canada or Japan.
If the Europeans follow Trump demands we might see the formation of s new cold war like trading blocks and factories abandoning china in droves as they would lose both of their main export markets.