A variable scale of possible EU reprisals against US tariffs, depending on the progress in commercial negotiations. Sector tariffs will probably be the key determinant of how far it is willing to carry the EU their own tariffs. There is an increasing risk of EU reprisals after the deadline of July 9, even if the conversations extend. However, any EU retaliation will probably be more limited, less severe and more specific than US measures, reports from Standard Chartered, Christopher Graham.
The EU can show the teeth
“We recently indicated that the contours of a commercial agreement between the EU and the US were emerging, and that there was a growing disposition of the EU to accept a minimum base tariff of the USA without resorting to reprisals. However, the US sectoral tariff that will come on pharmaceutical products. Substantial, we believe that there is likely to some degree of tariff retaliation by the EU. “
“We also think that there is a growing risk that this retaliation can arrive shortly after the deadline of July 9 passes, potentially on July 14, when the current EU tariff Keep in your current rates. EU, including expanding the range of possible objectives to include US services “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
