Analysts blamed this fall on Trump’s new 15% tariff regime, to be applied on February 24, and the reaction from countries that have already signed bilateral trade agreements with the U.S., as billions in investments are involved in these deals.
In this regard, reports indicate European legislators might postpone ratifying Trump’s tariff deal under the previous regime, as they doubt the U.S. can comply with its part of the bargain.
Bernd Lange, a lawmaker, stated that the U.S. was experiencing “tariff chaos,” bringing uncertainty to its commercial partners.
“Clarity and legal certainty are required before any further action can be taken. Therefore, tomorrow I will propose to the European Parliament’s negotiating team that we suspend legislative work until we have a thorough legal assessment and clear commitments from the United States.”
FAQWhat is the impact of Trump’s new tariff regime on the market?Analysts attribute the recent decline to the introduction of a 15% tariff effective February 24, leading to uncertainty among countries with existing trade agreements with the U.S.
How might potential military actions against Iran affect the markets?A possible U.S. strike on Iran could disrupt global oil supplies via the Strait of Hormuz, where over 20% of the world’s crude passes, further contributing to market instability.
