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President Donald Trump meets with the President of the European Commission Ursula von der Leyen at the World Economic Forum, Tuesday, January 21, 2020, in Devos, Switzerland.
Evan Learn | AP photo
Analysts warn that investors should “unleash” for greater instability, as the potential of the trade war has not completely dissipated, despite the delay of US President Donald Trump in the crackdown on 50% of the tariffs for the European Union.
Trump announced On Sunday, he agreed to push the performance of punitive duties until July 9 after the call with the EU President Ursula von der Leyen.
The president had Originally called In order for the 50% tariff for EU goods to begin on June 1. He accused the bloc of saying “very difficult to fight” and stated that trade negotiations with the EU “are not going anywhere”.
European shares bounced Monday morning, moved to a positive territory after Previously immersed On Friday, Trump’s fresh threats.
From Leen said in pillar On the X weekend, the EU was “ready to promote negotiations quickly and decisively.”
“The EU and the US share the next and closest trade relations in the world,” she said. “To achieve a good deal, we will need time by July 9.”
EU official who knew about trade negotiations with the US, said CNBC that the European Trade Commissioner On Monday, Moros Sefkovich had to talk to his American colleagues.
But while Trump’s announcement of the delay provided two sides of a few more respiratory places, the market observers warned on Monday that much remains on the map.
Shock tactics
Chief Economist Berenberg Holger Schmidding told CNBC that the six-week window until the tariffs was probably not enough time to “resolve all detailed issues”-but he claimed that it should be enough to put the scope of the trading agreement.
‘It should be enough to get an agreement as one between the US and the UK“He said on Monday at CNBC’s” Europe Early Review “.
“(This) is a matter of political will, and it depends a little on the US side,” he added. “If they have a political will, we must have the opportunity to have such an agreement, in the end, 10% of the US import tariff for all EU imports, is unlikely to be the EU and (scale back) several sectors … with some details that will be refined after July 9.” “
However, Schmidding noted that if the end result was 20% or 30% of the EU goods tariff, “there would be no choice in the EU” but impose “significant counteraction” against the United States.
Trump marking Trump’s “interesting negotiator”, Schimiding claimed that the president often tries to shake those with whom he negotiates the concessions. But, he said, the EU is unlikely to surrender to this tactic.
“We just have to remain calm, and on the European side we just have to negotiate – we must remember from the European side that our market is big, what we do is important in economics with the US, not just the opposite,” he added. “Thus, these negotiations should be negotiating among the equal. The European Union is not a region that can be scared just throwing in a towel.”
“Unclear” what Trump’s administration wants from Europe
Store Wolf, Senior Bruegel employee, said CNBC that, despite the long tariff period, “massive uncertainty” remained.
“This uncertainty is bad for business, it is bad for consumers, and frankly, this is an unnecessary step in the negotiations,” he said “Europe of the Early edition of Europe.”
“It is very unclear what the US president wants,” Wolf added. “This is the biggest obstacle at this stage that the EU’s negotiations made proposals, but does not really know what the president wants.”
According to Wolf, the EU “plays him pretty well.”
“The UK provided all sorts of requirements, China is another extreme (it) has grown … to the point that the United States had to blink, it had to be conceded,” he explained. “Europe is kind of trying to go the middle path.”
The EU has the opportunity to avenge when the Trump administration is charged with mass tariffs, adding WaLF, pointing to the importance of its pharmaceutical products in the United States and the potential for implementing measures to be implemented in the services.
“But the EU still decided not to do so to keep the climate of de-escalation,” he said. “But in the end, it may not be enough now.”
“This trip is far over”
Naeem ASLOM, Chief Investment CEO in Capital Markets London Markets, told CNBC on Monday that the tariff delay caused “orientation risk-rally” -Al, as well as Wolf, he warned that many remain on the map.
“Look forward, EU-tanks are a high share, with the next Flashpoint point,” he said in an e-mail.
“Evsky phased tariff reduction and” mutual respect “and” mutual respect “, but the American-first Bravada of America can turn negotiations into unworthy, rattling the supply chains and expand the inflation.”
Asla added that sectors such as technology and industrial funds were particularly “backed up for WHIPLASH”.
“The markets will hang on every tweet and a trading conversation, and investors are betting on whether this delay in the true olive industry or just Trump is restarted on a larger tariff analysis,” he said. “The fastener; this trip is far from the finished.”
– Sylvia Omar CNBC contributed to this report
