Investors won't feel threatened by Trump's tariffs

U.S. President Donald Trump delivered a speech at the opening ceremony of the West Point Military Academy in West Point, New York, USA on May 24, 2025.

Nathan Howard | Reuters

If U.S. President Donald Trump follows up on his threat to the EU's 50% tariff, he will impose higher responsibilities on U.S. allies, while China currently has 30%.

But on Sunday, Trump said he would postpone tariffs from June 1 to July 9 after a call with European Commission President Ursula Von der Leyen.

Indeed, when news of the tariffs first destroyed, analysts did not convince Trump's statement to take a big impact. First, the U.S. president uses the term “recommendation”, which is a proposal, not a clear directive. Trump has also backed down several times in terms of import responsibilities: suspending "reciprocal" tariffs and reducing trade barriers with China, although both are temporary.

Compared to Trump's initial tariff announcement on April 2, there was no obvious reaction in the U.S. and European major stock indexes, suggesting investors began to issue tariff-related announcements with a small amount of salt.

Barclays wrote in Friday’s notes that the proposal for the EU’s 50% tariff was primarily a “negotiation strategy.”

Still, the market fell in the week as fiscal yields increased - the S&P 500, Dow Jones Industrials and Nasdaq Comprehensive stocks lost more than 2%.

The Treasury sell-off is on the back of Trump’s tax bill, which is estimated to add $2.3 trillion to the federal deficit.

So while investors appear to be reaching a deal with Trump’s tariff announcement, there is much more in the president’s arsenal to keep the market on alert.

What you need to know today

Trump proposes 50% tariffs on the EU
U.S. President Donald Trump said on Sunday that he would postpone the EU's 50% tariffs until July 9 days after their launch starting June 1. Trade freight experts say the tariffs can be "counterproductive" to the United States and make manufacturing more expensive. CNBC's Eamon Javers reported that the White House did not interpret the president's position as a formal policy statement.

Market decline - slightly
U.S. stocks fell on Trump’s tariff threat on Friday. this S&P 500 Retreat to 0.67% Dow Jones Industrial Average Lossed 0.61%, Nasdaq Composite Materials Slide 1%. However, these moves are much smaller than the April 4 plunge after Trump announced “reciprocal tariffs.” Similarly, European Stoxx 600 The index fell by 0.93%, more modest than Trump's post-liberation day. ”

Apple pays 25% tariffs: Trump
Trump said in a social media post on Friday apple iPhones made outside Wall Street analysts in the United States estimate that transferring iPhone production to the United States will make smartphones at least 25% expensive. However, analysts say it may make more sense to move apples to consume costs rather than to move production in the United States.

Merger of US Steel and Japanese Steel
On Friday, Trump cleared the merger of U.S. Steel and Japanese Steel and said in an article about the Truth Society that the deal would "create at least 70,000 jobs and add $14 billion to the U.S. economy." Former U.S. President Joe Biden blocked Nippon Steel for $14.9 billion in January, citing national security concerns. Shares of U.S. Steel Inc soared 21.2%.

(Pro) NVIDIA Revenue to Determine Market
Nvidia First-quarter earnings were announced this week. Wednesday's event - and comments that Trump appears to have taken from the hips, will determine the investor sentiment in the market this week. Also note the U.S. personal consumption expenditure index in April to show how household prices affect the price of goods and services purchased by households.

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Artificial intelligence robots view futuristic digital data display.

Yuichiro Chino |Moments |Getty Images

Companies turn to AI to navigate Trump's tariff turmoil

Several tech companies told CNBC that they are deploying artificial intelligence to visualize the global supply chain of their business — from the materials used to form products to where they ship them, and understand how they are affected by Trump’s reciprocal tariffs.

last week, Salesforce It has developed a new import expert AI agent that can "immediately handle changes to all 20,000 product categories in the U.S. Customs system and then act on it as needed to help navigate the change in the tariff system.

The uncertainty of U.S. tariff measures “may actually show a shining moment for AI,” he told CNBC’s Silvia Amaro at the Ambrosetti forum in Italy last month.