The United States and the EU agreed to terminate the entry of new trade barriers, their gradual decrease in many areas and further cooperation.
Yesterday, the heads of the United States and the EU announced that they would begin to negotiate the decline in tariffs for all industrial goods, except for cars. The parties agreed to intensify trade with the chemical, pharmaceutical, energy and security sector. Donald Trump said that Europe will begin to import many American soybeans and liquefied gas. However, questions were left unresolved about tariffs for steel, aluminum and there were signs of future disagreements in the field of agriculture.
It is not yet clear how much a truce will last, but the parties consider it a mutual victory, as they were able to overcome the downward spiral of the development of relationships leading to a decrease in economic growth rates. Positive results were not forced to wait long. BMW shares today grew by 2.5%, Volkswagen added 3%, and Fiat rose by 4%. The American market also revived, the S & P 500 stock index rose by 0.9%.
Although the cease-fire reduced the pressure on the US and EU leadership, but Donald Trump used a threat as pressure levers. Therefore, some European officials believe that these negotiations can contribute to the formation of even stronger opposition in the region. However, against the background of the former gloomy news, the break allows the parties to cool and think about further steps.
While real markets begin to stabilize,