The 90-day delay on the 50% tariffs on Europe will expire on July 9th. Will the market panic that the Americans will immediately enforce the new tariffs on Europe, causing a rush to sell off to avoid risk.
An additional 50% tariff can be understood as a trade disruption. Of the 27 EU countries, 23 are part of the NATO alliance. It is well-known that, in terms of economy, military, energy, geography, and historical background, the EU has always relied on the United States. However, beneath the surface of apparent unity among EU member states, there are deep-seated differences and contradictions. Therefore, in recent days, representatives of EU member states have been running to the White House to act as sycophants.
There is no doubt that in the end, it will come down to negotiations, and the Trump administration will achieve its desired benefits, leading to another extension or direct cancellation of the increased 50% tariffs!
Therefore, those shorting the market based on this news seem irrational!