Analyst: Market Views Trump's Tariff Statement as a Negotiation Strategy, Reacts with Generally Muted Response

Danske Bank analyst Kirstine Kundby-Nielsen stated in a report that the fixed income market's reaction to U.S. President Trump's announcement of a 30% tariff on the European Union may be relatively muted.

The EU hopes to have more time for negotiations to make progress, thus indicating a delay in retaliatory measures against the U.S. She stated: "Our basic assessment remains that before August 1st, higher tariffs can be avoided." Currently, the market still considers the tariff announcement as part of Trump's negotiation strategy, hence the relatively muted response. (FX678)