#TrumpCancelsEUTariffThreat 🧵 Macro Watch: Trump Backs Off EU Tariff Threat 🇺🇸🇪🇺
Markets quietly breathed a sigh of relief today.
Former President Donald Trump signaled a pause on proposed EU tariff escalations, easing immediate fears of a renewed US–EU trade war.
Why this matters 👇
• ❌ Less trade friction = lower inflation pressure
• 📉 Reduces tail-risk for global supply chains
• 💵 Supports risk assets (stocks & crypto) short-term
• 🏦 Gives the Fed less reason to stay ultra-hawkish
Market reaction so far:
• Equities stabilize
• DXY softens slightly
• BTC & ETH holding key levels
⚠️ That said: this is headline relief, not a structural shift. Trade policy remains a wildcard going into election season.
Big question:
Does macro uncertainty fading + easing inflation risks = more room for risk-on into Q4?
👇 Drop your take — are markets underpricing political risk or already looking past it?