Trump is shaking again. The scholarships fall
US President Donald Trump threatens to impose 50% customs duties on imported products from European Union countries and has made it clear that commercial negotiations between Washington and Brussels are in a deadlock, AFP reports.
European scholarships dropped on Friday after Trump’s announcement.
« The European Union, which was formed with the main purpose of taking advantage of the United States in commerce, is very difficult to negotiate with it. Our discussions with them are nowhere. Under these conditions, I recommend imposing 50% customs duties against the EU, starting June 1, » Trump wrote on the Truth Social Network.
After these statements, around 12:00 GMT, the Paris Stock Exchange was down by 2.43%, the Frankfurt Stock Exchange was losing 2.03%and the one in Milan was down by 2.77%. The Pan-European Stoxx 600 stock market index was decreasing by 2%, given that the shares of car and banks lost more than 3%.
Subsequently, around 12:15 GMT, the CAC 40 index of the Paris Stock Exchange displayed a 3.06%decrease, as the shares of the companies in the luxury products sector and the car manufacturers were in a drop. Kering shares were down to 3.90%, Hermes securities were down and those of LVMH were 3.16%, all these companies being strongly dependent on the American market. In parallel, the actions of the Stelantis Auto group, and very present on the American market, were down by 4.74%.
Also, the euro decreased on Friday, losing previous winnings, after President Donald Trump’s announcement relaunched concerns about the impact of customs tariffs and world trade. After Thursday the euro increased by 0.8% compared to the dollar, on Friday it was 0.3% to $ 1.1311 for one euro.
On foreign exchange markets, the main winner was the Japanese Yen, a traditional refuge value. Last time, the US dollar was decreasing by 0.9% compared to Japanese currency, a dollar being quoted to 142.77 mei, while the euro was decreasing by 0.56% being quoted to 161.43 yen.
