Trump’s EU Tariff Threat Shakes Markets—Volatility Returns
On Friday, Donald Trump threatened a 50% tariff on all EU imports starting June 1, calling talks with Brussels “pointless” and accusing the bloc of trade manipulation. The post sent a clear message—European indices dropped like a stone.
GER30 outperformed much of the continent, but still felt the blow.
Some say Trump’s threat is a pressure tactic to force the EU back to the table—and markets seem to agree. After the initial drop, major indices began to recover, pricing in the chance that he’ll walk it back, just like he did with China earlier this month.
For traders, that’s a window: volatility is back, but so is opportunity.
