The post Markets aren’t buying Trump’s 50% EU tariff threat appeared on BitcoinEthereumNews.com.

European investors didn’t blink when Trump declared he was “recommending” a 50% tariff on every single import coming from the European Union, a threat he dropped Friday on Truth Social, right before US and EU officials were set to meet. The Stoxx Europe 600 index closed down just 1%, shaking off the news like a mild cold. That’s a soft reaction compared to the sharp losses—between 2.5% and 5%—markets suffered back in April when Trump posted similar threats during what he called “Liberation Day.” According to CNBC, most analysts think this latest escalation isn’t a policy ready to launch, but a negotiating bomb designed to scare Brussels into giving Washington more ground in upcoming talks. The language Trump used and the timing of his post both fueled that theory. He didn’t say the US would impose the tariff. He said he was recommending it. There’s a difference, and Ajay Rajadhyaksha, global chair of research at Barclays, pointed it out. “We believe that this morning’s social media posts about a 50% tariff on the EU are primarily a negotiating tactic,” Ajay wrote to clients. He also said “we are guessing here—as is everyone else—but we remain of the belief that the 50% tariff on all EU goods on June 1 won’t actually go ahead.” Economists doubt Trump will go all the way Even so, Ajay admitted the final number could still surprise markets. He had earlier forecasted 14% to 17% average tariffs. Now, he says that was probably too low. “The EU will not end up with 50%, we think, but it now seems the continent could end up with (say) 20%,” he said. Andrew Kenningham, chief Europe economist at Capital Economics, said something similar. He called the 50% tariff “very unlikely to be where tariffs settle over the long run,”…

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Filed under: News - @ May 23, 2025 7:26 pm