Bessent: Trump move is in response to EU’s pace on tariffs

If you missed it, Trump earlier ‘recommended’ a 50% tariff on the EU starting June 1.

• Trump believes EU proposals have not been of good quality
• Would like to have Apple help US to make semiconductor supply chain better
• Trump trying to bring back precision manufacturing to the US
• Says US is ‘far along’ with India and Asian countries
• Most countries negotiating in good faith except EU
• These deals are moving quickly
• We will see more deals announced in 90-day period

Separate comments are coming from the German foreign minister:

• We support Commission to defend the European market
• Both markets would suffer, that’s why we want further negotiations

In hindsight, we should have been bracing for something. Trump took a break from the trade war to go to the Middle East and wouldn’t have wanted to announce something like this during the G7 on Wed/Thurs.

Notably, Trump will attend the G7 in Canada from June 15-17, so if he follows the pattern of lowering tensions during international visits, that leaves a three-week window.

This article was written by Adam Button at www.forexlive.com.