The above selling was mostly fuelled by China’s announcement of 34%
Meanwhile we await the EU response.
There is a meeting on Mon between EU’s trade ministers in Luxenbourg. This is how the EU will respond - input from member states,each with their own angle.
Approval for the retaliation re the steel and aluminium tariffs will happen on Wednesday.
Meantime a package is being drawn re the 20% tarrif announced this week - discussions are being kept under wraps.
There is a train of thought within the EU that the 20% number will push many EU companies out of the US market thus if the US responds by raising the 20% number the impact will be minimal.
My own thinking (for what it’s worth) is that the Commission will adopt a incremental approach - specific tarrifs on specific trade - they can include services etc at a later time if negotiations fail.
Very unlikely that the Anti-Coercion Instrument law will be used at this time.
It’s a case of watch this space I suppose.
Edit: Wednesday’s approval of the retaliatory measures relate only to the earlier Steel tariffs announced by the US - these measures will come into effect on 15th April…