A fresh transatlantic standoff is unfolding — and markets are starting to feel it.
🔥 What’s 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 EU–U.S. relations in years, reigniting long-standing trade frictions
🛡️ EU’s Countermoves on the Table • €93B ($108B) in retaliatory tariffs on U.S. goods
• Emergency EU summit & diplomatic push to prevent a trade war
• Anti-Coercion Instrument (ACI): the EU’s “trade bazooka,” allowing broad countermeasures beyond tariffs
• Internal split: Some leaders favor negotiation, others call the tariffs outright economic coercion
📉 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
⚠️ A full-blown trade war would not stay contained — global spillovers are inevitable. Markets are watching every headline.
