Analyst: Trump’s Weekend Tariff Hike Puts Market Resilience to the Test Again

According to a report by Jinse Finance, analysts have noted that financial markets, which have become increasingly insensitive to U.S. tariff threats, will face a test when they open on Monday, following Trump’s weekend announcement of a 30% tariff on the European Union and Mexico starting August 1. Recently, Trump has ramped up trade measures, pledging to impose more tariffs on all countries from Canada to Brazil to Algeria, and inviting trade partners for further negotiations. Although warnings not to take the situation lightly have been issued by figures such as JPMorgan CEO Jamie Dimon, investors so far seem to be betting that the U.S. president will back down again, as they have witnessed previous abrupt reversals. Brian Jacobsen, Chief Economist at Annex Wealth Management, stated, “Investors should not simply dismiss Trump’s threat of a 30% tariff on EU goods as mere posturing. This tariff level is punitive, but it may hurt the EU more than it affects the U.S., so the clock is ticking.”