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France asks US to be 'cooperative' instead of 'confrontational' following Trump's 'Liberation Day' tariffs

1. Trump's tariffs may lead to higher consumer prices in the U.S. 2. EU threatens retaliatory tariffs of up to $28 billion. 3. Tariffs could complicate trade relations with major global partners. 4. U.S. trade deficit with the EU was $235.6 billion in 2024. 5. French Minister urges for a cooperative trade approach.

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FAQ

Why Bearish?

Tariffs can increase costs for consumers and businesses, reducing corporate profits. Historical data shows that previous tariff implementations led to market declines.

How important is it?

Increased tariffs can influence inflation rates and consumer spending, affecting S&P 500 earnings.

Why Short Term?

Immediate effects on trade and consumer prices will impact the market swiftly. Over time, markets might adjust, but short-term volatility is expected.

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