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Reading: Trump’s newest telephone negotiation tactic on tariffs more likely to heighten EU retaliation menace | Cash Information
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The Wall Street Publication > Blog > World > Trump’s newest telephone negotiation tactic on tariffs more likely to heighten EU retaliation menace | Cash Information
World

Trump’s newest telephone negotiation tactic on tariffs more likely to heighten EU retaliation menace | Cash Information

Editorial Board Published May 23, 2025
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Trump’s newest telephone negotiation tactic on tariffs more likely to heighten EU retaliation menace | Cash Information
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President Trump’s Friday flurry of pronouncements marks the return of negotiation by smartphone and should set off one other interval of profound uncertainty for worldwide commerce and monetary markets.

The specter of 50% tariffs in opposition to the European Union, issued hours earlier than his commerce consultant met their European counterparts, is a present of presidential muscle absolutely designed to strongarm these on the opposite aspect of the desk.

It’s an escalation more likely to heighten the specter of retaliation from Europe, and with a number of keystrokes ends the transient interval of calm that had returned to international commerce and markets in latest days.

Cash weblog: Trump sends message to UK on vitality payments

Picture:A crimson hat in Washington DC to assist President Trump. Pic: AP

Talks in Switzerland between US and Chinese language delegations a fortnight in the past took the sting out of Sino-American hostility, negotiating three-figure tariffs that amounted to a mutual commerce embargo right down to manageable ranges.

Monetary markets had regained many of the losses sparked on ‘Liberation Day’ in April, when Donald Trump declared complete commerce conflict, and there was optimism that for all his bluster, there is likely to be significant room for constructive compromise.

The UK even secured a deal of types, securing a discount in auto tariffs in change for a reciprocal opening of agricultural markets.

There can be no such deal for the EU in a rush. A 50% tariff on all exports to the US isn’t solely greater than the unique threatened blanket tariff of 20% and double Mr Trump’s proposed 25% on European vehicles, it’s greater even than China.

European shares predictably ended the week in decline, with automotive producers together with BMW, Volkswagen and Stellantis all down.

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Following talks with Chinese officials in Geneva, US treasury secretary Scott Bessent announced a deal has been reached for a 90-day pause on measures.0:54

12 Could: US and China attain settlement on tariffs

It stays to be seen whether or not this menace will stick.

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Mr Trump has repeatedly blinked first within the commerce conflict he began, backing down on international reciprocal tariffs when bond markets rebelled earlier than caving in Geneva to succeed in an lodging with China.

His grievances with Europe seem to have an additional edge nevertheless, and the implications of the uncertainty he’s sparked can be far-reaching.

If this was the one factor he had introduced on ‘Liberation Day’ it could nonetheless have been enormous.

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