European stocks slide after the threat of Donald Trump’s tariff

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European stocks fell on Monday in response to the threat of US President Donald Trump by 30 percent of the customs tariff for the European Union, the most recent escalation of its trade war.

The DAX index in Germany decreased by 0.9 percent by early in the afternoon, while CAC 40 in France fell 0.5 percent. Broad Stoxx EUROPE 600, which includes non -European Union markets, has decreased by 0.4 percent.

These moves came after Trump announced the planned fees on Saturday, which prompted the bloc to delay my scheduled revenge for it Definitions The United States must reach an agreement with Washington before the deadline on August 1.

Trump’s latest announcement in a series of commercial threats from the American administration represents the past week.

The proposal of the new customs tariff of 30 percent is much higher than the 20 percent level announced on “Liberation Day” on April. But the market’s reaction was limited, as some investors said they expected to back down from the holiest threats before August 1.

“After a period of relief, the customs tariff can be controlled amid many empty threats, some concerns adopt that the performance of the market itself may encourage Trump to pay further,” said Jay Miller, the chief market strategy in Zurich.

“I think this is legitimate, with a great risk of turmoil during the summer, albeit more modest and contained from April.”

Stoxx 600 car companies that follow the index and other car companies have decreased by 1.1 percent. Mercedes -Benz and BMW decreased by 1.7 percent and 2.2 percent, respectively.

Luxury companies that sell in the United States also suffered. Hermes shares decreased by 1.9 percent and King decreased by 1.5 percent. Pandora fell 2.7 percent.

The euro decreased by 0.1 percent against the dollar.

American stocks also decreased when the market opened on Monday, but the declines were more audio.

S&P 500 fell in Wall Street by 0.1 percent in the opening bell, and NASDAQ opened 100 apartments.

Peter Shafrick, chief strategic expert in European Macro at RBC Capital Markets, said that the relatively silent market reaction was partial that the threat of 30 percent is a negotiating tactic by Trump.

However, he added: “I am personally more anxious. We have been here before. If there is no settlement of negotiations, I cannot see how the European Union takes lying – so they may explode.”

Analysts say that the sale is much larger than if the tariffs are 30 percent-which Trump also threatened Mexico Saturday – into force.

Barclays wrote that “if the United States will already increase the customs tariff on the European Union goods to 30 percent, it is possible that the risk of revenge and deeper stagnation will send the stock to the bottom of double numbers.”

“We are skeptical, they will settle on the high levels of Trump,” Barclays’s note added. Goldman Sachs also said that “doubts about the possibilities and durability of potential implementation” are “good institution.”