US President Donald Trump announced that 25 %tax on automobiles and other products from the European Union. It was reported that the decision created uncertainty in global trade and caused the expectation of fluctuation in the markets. In addition, there were possible fluctuations in the crypto markets.
Trump’s explanations
Trump continues to say that the EU provides an unfair advantage to the United States. In a statement during the meeting, he said that the steps will be taken to correct the problems in the trade balance. Authorities, the tax officially put into practice as soon as possible, he said.
Donald Trump: “The European Union provides market access to the US, restricting American products.”
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The forecasts are that in the early days of April, this additional tax will be activated for the EU with other countries. This shows that negative atmosphere in crypto currencies for 30-35 days can continue while negotiating.
Effects on Financial Markets
Following the announcement of the tariff, the euro declined by 0.2 %against the US dollar. Similar interactions were observed in other items, including the automotive sector in financial markets. Market actors evaluated that measures may force trade relations.
Economists and investors said that such practices may have long -term effects on international trade balances.
The focus of the application on automotive and other import items raised various regulations in commercial relations. Especially in export -based sectors, risks may increase. Investors need to follow the developments closely. Although Trump sits hard on the table by holding his hand strongly, he knows that he has to get up from the table in a way that has found some concessions. At least he will think that he is not going to be so crazy that he makes statements in this direction.
These developments may have long -term effects in global trade relations and financial markets. Actors operating in the relevant sectors are raised to take cautious steps by making risk analyzes. Closely examining market data aims to reduce uncertainties.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
