Trade negotiations between the United States and the European Union have been stable, so from June 1, Washington plans to increase duties by 50%.
The European Stock Market on Friday dropped dramatically, and the profitability of Eurozone government bonds decreased after Donald Trump’s statement about the intent to introduce 50% of the fee for all goods from the European Union. Reuters reported it Friday, May 23.
The US president made a statement in a series of TruthSocial posts, where he also criticized Apple.
Trump said the European Union is said to have been created with the main purpose of gaining benefits from the United States in trade.
“Our negotiations with them will not lead to any! Therefore, I recommend introducing a direct 50% duty to the European Union, beginning June 1, 2025,” he added.
His words broke the hope of investors previously announced that the duties were able to be able to be negotiated by negotiations -this has supported optimism in the markets in recent weeks.
The Stoxx 600 index was reduced by 1.5%, while sharing vehicle companies and luxury lost more than 3%. Export -dependent German Dax fell 2.3%. American futures in the S&P 500 also sink 1.5%, as investors are concerned about a possible blow to economic growth in the world.
“This is a significant increase in trade stress,” said Golger Schmiling, Berenberg’s chief economist. – “In Trump, you don’t know for sure, but this step will fully hit both the US economy and Europe.”
Against the background of the growth of uncertainty, the two -ear -old German bonds lost 8 main points (up to 1.75%), while the yield of 10 -Year -olds was reduced by 7 points (up to 2.57%).
Among the currencies, the yen was strengthened – the dollar fell here by 1%, up to 142.5. The Euro was also reduced in relation to YEN (up to 161.58), however, relative to the dollar remained in plus – $ 1.1335 (+0.5%).
Previously, Trump emphasized that he had no intention of causing a sharp collapse in the market, but confirmed his goal of reducing trade shortage in the US.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.