Reside updates: Inventory market plummets following tariff announcement

Trump’s announcement of a brand new 20% tariff on the European Union drew a pointy rebuke from European Fee President Ursula von der Leyen, who stated it was a “main blow to the world financial system.”

“The results will likely be dire for hundreds of thousands of individuals across the globe,” von der Leyen stated. Groceries, transport and medicines will value extra, she stated whereas visiting Uzbekistan. “And that is hurting, specifically, probably the most susceptible residents.”

Von der Leyen held off, nonetheless, from saying new retaliatory measures and underlined that the EU was prepared to barter with the U.S.

Analysts say there’s little to be gained from an all-out commerce conflict since greater tariffs can decrease progress and lift inflation.

“However, Trump appears to grasp solely the language of pressure, and this means the necessity for a powerful and speedy response,” stated Matteo Villa, a senior analyst at Italy’s Institute for Worldwide Political Research.

“Most likely the hope, in Brussels, is that the response will likely be robust sufficient to induce Trump to barter and, quickly, to backtrack.”

▶ Learn extra in regards to the world response to the tariffs