A fresh transatlantic standoff is unfolding â and markets are starting to feel it.
đĽ Whatâs Driving the Conflict ⢠U.S. tariff threat: President Trump announced 10% tariffs starting Feb 1, with warnings of escalation to 25% on imports from several European countries
⢠Wider fallout: Seen as one of the most serious strains in EUâU.S. relations in years, reigniting long-standing trade frictions
đĄď¸ EUâs Countermoves on the Table ⢠âŹ93B ($108B) in retaliatory tariffs on U.S. goods
⢠Emergency EU summit & diplomatic push to prevent a trade war
⢠Anti-Coercion Instrument (ACI): the EUâs âtrade bazooka,â allowing broad countermeasures beyond tariffs
⢠Internal split: Some leaders favor negotiation, others call the tariffs outright economic coercion
đ Market Impact So Far ⢠European equities slipping on rising uncertainty
⢠Officials on both sides warn escalation could hit growth and global markets
⢠EU signals readiness to deploy WTO-compatible retaliation if talks fail
â ď¸ A full-blown trade war would not stay contained â global spillovers are inevitable. Markets are watching every headline.
