Trump's Tariff Tactics: Dominating Headlines and Risking Economic Turmoil

President Trump appears to be using tariff threats primarily as a strategy to dominate news headlines, rather than engaging in complex trade negotiations. The impact of these tactics is evident in market reactions, which have been cautious yet largely unshaken across Asia and Europe.

Despite the minor changes in regional indices, European futures have seen a slight decline, stemming from uncertainty over Trump's expectations from the EU. With U.S. tariffs already minimal, the feasibility of additional cuts remains questionable, complicating the political landscape.

Amid record-high U.S. stock prices, Trump's confidence in tariffs is growing, suggesting a potential clash with professional economists who foresee economic downturns akin to historical events. Meanwhile, Trump's disputes with Fed Chair Jerome Powell raise further questions about future monetary policy and interest rate adjustments.

(With inputs from agencies.)