US-EU trade negotiations are reaching a critical importance, with potential tariff hikes that could impact global trade.
Trade Talks and Risks
U.S. Treasury Secretary Janet Yellen reported that negotiations with the European Union are at a critical stage. If no agreement is reached, President Trump may revert tariffs to April levels. This could lead to a 10% increase on goods from about 100 countries.
Deadlines and Implications
The deadline to reach a deal is July 9, 2025. Swift action is required to avoid tariff increases, which could significantly reshape international trade and influence market dynamics. Potential effects on traditional finance markets have been noted, although cryptocurrencies like BTC and ETH have shown resilience in such tensions.
Historical Market Reactions to Tariffs
Recent studies indicate that past tariff increases, notably during the Trump administration, led to substantial stock market volatility, while cryptocurrencies like BTC and ETH remained less affected. This may suggest their resilience against conventional financial shocks.
Trade negotiations between the US and EU have significant implications for the global economy. Considering upcoming deadlines and potential tariffs, the conduct of negotiations remains critically important for all parties.
