President Donald Trump will meet Ursula Van Der Leyen, President of the European Commission, at the World Economic Forum, January 21, 2020 in Davos, Switzerland.
Ivan Wakki | AP photo
Analysts have warned that investors should “buckle up” for greater volatility because the US President Donald Trump delays extracting 50% of the tariffs on the European Union.
Trump Published After a call with the EU Commission President Ursula Van Der Leyen, he agreed to push the roll out of punishable import duties by July 9.
The president was there Is called at the beginning A 50% tariff will start on EU goods on June 1. He alleged that “it is very difficult to deal with” in a social media post and said business talks with the EU was “not going anywhere.”
European shares Repatriate Monday morning, going to a positive area, then Sinking back Friday in response to Trump’s new tariffs.
A Shredded The EU in the X “Ready to lead talks quickly and decisively.”
“The EU and the US share the most effective and intimate business relationship in the world,” he said. “To reach a good business, we need time until July 9.”
European Trade Commissioner Maros Sefcovic a Post in x Monday after Monday he had “good calls” with us, commercial Secretary Howard Lutnik with us and he would “continue in constant contact”.
But the announcement of the Trump delay has given the two parties even more breathing, but market observers warned on Monday.
Shock strategies
He argued that the six-week window was not enough to “settle all detailed questions” until the tariffs had begun.
“It is enough to get an agreement One between the US and the UK“He said on Monday at CNBC’s” Europe Early Edition “.
“(This) is basically a political Ich WILL, and it depends slightly on the US side,” he said. “If they have a political Ich WILL, we will be able to really have such an agreement, perhaps in the end, 10% from the US about all EU imports, no EU retaliation, and some zone-specific facts to be finalized with some details after July 9.”
However, if the end result is 20% or 30% rug tariff on EU goods, “EU has no other option” but impose “significant resistances” against the United States.
Trump labeled him as a “interesting consultant”, arguing that Shmiding would try to shock those who are negotiating to accept discounts. But the EU, it is unlikely to surrender to these techniques, he said.
“We have to be calm, and from European side, we need to negotiate – we have to remember that our market is huge. We are quite important to the US,” he said. “So these talks should be equally negotiations. The European Union is not afraid to throw in a towel.”
The Trump administration wants to be from Europe
Brewgel’s senior fellow Guntram Wolf told CNBC that despite the expansion of the tariff deadline, there is a “massive uncertainty”.
“This uncertainty is bad for business. This is bad for consumers, and this is an unnecessary step in negotiations,” he told CNBC’s “Europe Early Edition”.
“It is not very clear what the US president wants exactly what it wants,” Volph added. “This is the biggest obstacle at this point. Made proposals in the conversations made by the EU, but the president doesn’t really know what it wants.”
According to Wolf, the EU is “playing it well.”
“The UK has given all sorts of demands. China is the other severe, (it) is really exacerbated … to the point of being blinking,” he explained. “Europe tries to take a moderate way.”
Wolf added that the Trump administration was able to impose heavy tariffs on its export, suggesting the importance of its CE -shaped products and the ability to implement revenge measures in the services sector.
“But the EU has decided not to do this so far. To keep an atmosphere of really exacerbated,” he said. “But at the end of the day, it’s not enough now.”
‘This ride is not over’
London’s AY Capital Markets Chief Investment Officer Naeem Aslam said on Monday that CNBC’s delay was sung by the “temporary risk rally”-but Wolf warned that he was more share.
“While looking forward, the EU-US trade dance is a higher share tango. The next flash point of July 9,” he said in the email.
“EU’s swinging stage tariffs and” mutual respect “talks, but Trump’s American-American courage can turn talks into slugfest, rattling supply chains and inflation flames.”
Aslam said that fields such as tech and industries were especially “braced for Wiplash”.
“Investors betting that every tweet and trade talk shuts in whispers. The delay is reloading Trump for a real olive branch or a big tariff confront.” “Buckle up; this ride is over.”
– CNBC’s Sylvia Amaro contributed to the report
