Trump Threatens “Larger Scale Tariffs” on EU, Canada Amid Trade Tensions

Markets Remain Stable Despite Trump's Threats of Larger Tariffs Against EU and Canada

  • Former President Trump threatens larger import tariffs against EU and Canada if they collaborate to harm U.S. economic interests.
  • Financial markets remain stable despite Trump’s threats, with BTC holding below $88,000 and modest movements in European and U.S. futures.
  • Market resilience likely influenced by Fed Chair Powell’s recent comments suggesting tariff-related inflation could be temporary.

Former President Donald Trump has issued new tariff threats against the European Union and Canada, warning of escalated trade tensions if the two economies coordinate actions that he perceives as harmful to U.S. interests. Despite these threats, cryptocurrency and traditional financial markets have shown minimal reaction.

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In a late Wednesday post on his Truth Social platform, Trump declared that more severe import tariffs would be implemented if the EU and Canada worked together against U.S. economic interests. “If the European Union works with Canada in order to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had!” Trump said on the platform.

The cryptocurrency market appears unfazed by this development, with Bitcoin (BTC) maintaining its position below the $88,000 level. Similarly, traditional markets showed only modest responses, with Germany‘s DAX futures declining by just 0.3%, while U.S. stock market futures traded in neutral to positive territory.

Market analysts attribute this resilience partly to recent statements from Federal Reserve Chairman Jerome Powell, who suggested that any inflationary pressures resulting from tariff policies might be transitory rather than long-lasting. This perspective appears to have tempered immediate market concerns about potential trade conflicts.

The relatively calm market reaction indicates investors may be waiting for more concrete policy announcements before making significant portfolio adjustments, particularly given the preliminary nature of these tariff threats.

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