President Donald Trump announced new tariffs during his Liberation Day event, angering countries around the world. The European Union (EU) is among the governing bodies upset about these new tariffs and is weighing options to retaliate against them after the President placed a 20% tariff on all imports from it.
Austrian economy minister Wolfgang Hattmannsdorfer said the EU’s retaliation plans need to see it “hit Republican states” and “hit Donald Trump’s friends” if they want to be successful. This could include targeting tech companies aligned with the President via digital taxation and regulation.
When Will the EU Vote on Tariff Retaliation Plans?
The EU will hold a vote on its tariff retaliation plans on April 9. Approval of the plan requires a qualified majority of 15 countries in the EU not voting against the plan, representing 65% of its population.
The EU is currently only considering retaliation on the steel and aluminum tariffs introduced by President Trump in March. However, it’s likely the government will consider additional retaliation against the new 20% tariffs placed on the region. That could happen alongside this vote or be discussed at a later date.
Tariffs Create Worldwide Turmoil
There’s volatility across the stock markets as investors react to the latest tariffs from President Trump and possible countermeasures. This has many investors abandoning growth stocks in favor of safe-haven investments, such as gold. That’s caused the price of gold to increase recently and has also spurred interest in gold mining stocks, such as Barrick Gold (GOLD) and Newmont Mining (NEM).
Additional economic data might result in further fluctuations for the stock market and gold prices. Traders will want to stay up to date on these matters with the TipRanks economic calendar and economic indicators dashboard.
