If you missed it, Trump earlier ‘recommended’ a 50% tariff on the EU starting June 1.
Trump believes EU proposals have not been of good qualityWould like to have Apple help US to make semiconductor supply chain betterTrump trying to bring back precision manufacturing to the USSays US is ‘far along’ with India and Asian countriesMost countries negotiating in good faith except EUThese deals are moving quicklyWe will see more deals announced in 90-day period
Separate comments are coming from the German foreign minister:
We support Commission to defend the European marketBoth markets would suffer, that’s why we want further negotiations
In hindsight, we should have been bracing for something. Trump took a break from the trade war to go to the Middle East and wouldn’t have wanted to announce something like this during the G7 on Wed/Thurs.
Notably, Trump will attend the G7 in Canada from June 15-17, so if he follows the pattern of lowering tensions during international visits, that leaves a three-week window.
This article was written by Adam Button at www.forexlive.com.