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Trump rounds out key tariff threats with letters to E.U. and Mexico - MarketWatch

1. Trump announces 30% tariffs on EU and Mexico, effective Aug. 1. 2. U.S. imported over $600 billion from EU and $500 billion from Mexico last year. 3. Ursula von der Leyen warns tariffs will disrupt transatlantic supply chains. 4. S&P 500 shows minimal reaction, finishing 0.3% lower, but near record highs. 5. Economic indicators like import prices remain stable amidst tariff threats.

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FAQ

Why Bearish?

The potential disruption from tariffs may negatively impact global trade and growth. Historical data shows similar tariff announcements often lead to short-term market volatility.

How important is it?

Given the scale of tariffs and their potential economic impact, the relevance to S&P 500 is significant.

Why Short Term?

The immediate impact of tariff announcements is usually felt quickly in the market. Past instances, like the China tariffs, caused immediate reactions in the S&P 500.

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