Trade war: Tariff tensions resurface after EU-US setback – Danske Bank

FXStreet Insights Team FXStreet

Danske Bank’s Danske Research Team notes that trade tensions remain elevated after the European Parliament postponed ratification of the EU-US trade deal over concerns about Trump’s new unilateral 15% tariff. China is urging Washington to remove unilateral tariffs, India has delayed talks, and the UK is warning of potential retaliation as the new global tariff framework begins at 10%.

EU-US deal delay and global tariff risks

"In Brussels, the European Parliament postponed ratification of the EU-US trade deal amid concerns that Trump's new unilateral 15% tariff breaches the 'Turnberry accord' agreed last summer."

"Meanwhile, China has urged Washington to remove unilateral tariffs, India has delayed planned trade talks, and the UK has warned that "nothing is off the table" if the US fails to honour their 10% tariff deal."

"Today, the global tariff will start at 10%, with the administration working towards raising it to 15% under a separate order that Trump has yet to sign."

"Overnight European time, US president Trump will give the annual State of the Union speech."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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