The European Union (EU) is prepared to retaliate against potential US steel tariff hikes that could disrupt ongoing trade negotiations. EU officials, including Trade Commissioner Maroš Šefčovič, are engaging in high-level talks with US representatives seeking a balanced outcome. The EU has warned of retaliation through tariffs exceeding $100 billion on US goods if the negotiation process stalls. Key industries like steel, auto and tech could face increased volatility due to potential tariff increases.
The EU highlights that they haven’t changed their position, proposing zero-to-zero tariffs on industrial products. Negotiations are ongoing, with Šefčovič meeting with US Trade Representative Jamieson Greer in Paris, aiming to address these challenges. Market reactions to the escalating tensions remain diverse, but the EU remains committed to a peaceful negotiation process.
A historical analysis reveals that past tariff escalations have historically triggered speculative activity in markets. The impact on crypto assets was limited during these periods.
Coincu research suggests potential market instabilities caused by tariffs could lead to increased volatility. They see Bitcoin and Ethereum as investment options, particularly during such macroeconomic stress.
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