Another tariff rollout twist has led to a stock market rebound, with big food showing gains too
Note: The EU suspended retaliatory tariffs following the recording of this video.
In yet another tariff rollout twist, US President Donald Trump has backtracked with a 90-day reprieve for many countries.
The pause means trading countries and groups like the EU will no longer for the time being pay their bespoke taxes to import into the US, but will instead face the 10% baseline tariff targeted at the likes of the UK.
In answer to why he’d implemented the three-month pause, Trump said “people were jumping a bit out of line”.
What do tariffs mean for the EU?
China, however, will not benefit from the reprieve as Trump plans to knock the country’s economy about still. China has also vowed to fight back with force.
Following the US president’s climbdown on Wednesday, global stock markets began to rebound, with the S&P 500 climbing by 9.5% and UK’s FTSE 100 upping by 4.51% in the first few hours of trading on Thursday morning.
Big food brands like Mondelēz International, Coca-Cola Co, Pepsico Inc and Nestlé SA saw shares rise within hours of Trump’s rollback.
Hours before the controversial president’s tariff pause, European Member States had agreed to retaliatory measures following several weeks of consultations with the European Commission.
These included 25% taxes on a wide range of US imports including almonds, orange juice, poultry, soybeans, steel, aluminium, tobacco and yachts.
How will the EC respond?
The commission suspended its retaliatory tariffs following Trump’s announcement. .
It is believed the EU was also discussing the possibility of buying in more US gas in a bid to tease out leniency from Trump.
Mondelēz International recently said the business remained positive despite the turmoil caused by Trump’s tariffs.
Meanwhile, businesses and consumers in the States were getting ahead of the tariffs by stockpiling food and goods from importing countries set to be hit with heavy taxes.
