While the US economy was exhibiting signs of recovery and the labor market was stabilizing, the US stock market and Treasury bonds were also holding steady. Inflation in the US was decreasing, and global central banks were busy evaluating the overall effects of tariffs. Suddenly, an announcement was made that US President Donald Trump had suggested a 50 percent tariff on the European Union, set to go into effect on June 1.

Trump accused European policymakers of employing delaying tactics in tariff negotiations, which he believes will be unproductive. The timing of this announcement was problematic, especially since he had already warned Apple, the iPhone manufacturer that it needed to move its production to the US or face a 25 percent tariff on its imports.

The financial market reacted immediately, gold prices soared, Dow futures dropped significantly, and by the end of the day, the Dow Jones Industrial Average had fallen by 2.47 percent. The S&P 500 decreased by nearly 39 points, and the Nasdaq Composite dropped by 1 percent. Yields on 10-year US Treasury bonds decreased by 4.4 percent, and the US dollar weakened as well.

According to the US Treasury Secretary, Trump felt that the trade offers from the European Union were inadequate. He expressed hope that the threat of new tariffs would encourage the EU to engage more seriously in........

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