- European markets had a muted response to the news that U.S. President Donald Trump plans to slap 30% tariffs on the EU, when they reopened this week.
- The sentiment around tariffs demonstrates a stark contrast to that seen in the aftermath of Trump’s so-called “liberation day” announcement.
- Some market watchers believe some investors could be being complacent, with one arguing the EU is unlikely to “give in as easily as Trump might hope” in negotiations.
Global investors may be underestimating U.S. President Donald Trump’s commitment to follow through on his latest tariff threats, some market watchers have warned.
In his latest trade policy update, Trump announced that he would be slapping 30% tariffs on goods imported to the U.S. from the European Union and Mexico from Aug. 1.
European markets had a muted reaction to the news, with the pan-European Stoxx 600 index ending Monday’s session — the first after Trump sent his letter to the EU — 0.06% lower. Tuesday’s session saw a slightly deeper sell-off, with the index shedding 0.4%, but sentiment was largely dampened by economic growth concerns after U.S. inflation rose.
Source: https://www.cnbc.com/2025/07/16/taco-trade-president-donald-trump-chicken-out-30-percent-tariffs-eu-mexico.html