Analyst: Market Views Trump's Tariff Statement as a Negotiation Tactic, Reaction Generally Muted

On July 14, Danske Bank Research analyst Kirstine Kundby-Nielsen said in a report that the fixed income market's reaction to US President Trump's announcement of a 30% tariff on the EU is likely to be relatively muted.

The EU wants more time for negotiations to progress, so it said it would postpone retaliatory measures against the US. "Our basic assessment remains that higher rates can be avoided before it takes effect on August 1," she said. Currently, the market still regards the tariff statement as Trump's negotiating tactic, so the reaction is basically flat. (Golden Ten)