Trump's Trade Moves Stir Global Markets Amid Tariff Threats
Asian stock markets see gains as President Trump extends tariff deadlines, offering a temporary reprieve. European Commission discussions push trade talks to July, affecting sentiment. Investors brace for a possible U.S. recession, with money flowing to Europe and Asia. Tariff escalation impacts companies like Apple and global GDP concerns.
Asian stock markets experienced modest gains on Monday following President Donald Trump's decision to extend his tariff threat against European Union goods by over a month. The move provided temporary relief and fueled optimism in light of Trump's often unpredictable trade policies.
The extension follows discussions between Trump and European Commission President Ursula von der Leyen, who requested more time to negotiate a favorable trade deal. This decision postpones the negotiation deadline to July 9, providing much-needed stability after last month's market tumult and investor enthusiasm for new trade pacts with the UK and China.
However, Trump's tariff threats remain a stark reminder of the potential for rapid market shifts. Analysts note a current trend of capital relocation from the U.S. to Europe and Asia due to concerns over a potential U.S. economic downturn. Brown Brothers Harriman warned that the escalation could negatively impact global economic growth, with the U.S., EU, and China collectively representing 60% of global GDP.
(With inputs from agencies.)
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