The European Union selects diamonds, dental floss, and bathrobes to impose retaliatory tariffs on the United States, while President Trump threatens China and pressures the Fed

The European Union (EU) has escalated trade tensions with the United States by announcing a detailed list of American products, including items as diverse as diamonds, dental floss, and bathrobes, on which it will impose retaliatory tariffs. This action follows President Donald Trump's previous decision to reinstate 25% tariffs on steel and aluminum from Europe.

According to the European Commission, these countermeasures could affect US imports worth up to €26.000 billion. The strategy aims to impact specific sectors in key Republican-leaning states. Implementation will be gradual, beginning on April 15 with an initial round of tariffs on products valued at €18.000 billion.

European Trade Commissioner Maros Sefcovic underlined the EU's firm stance in this situation: "We are prepared to use all the tools in our arsenal to protect the European single market, our producers and consumers.".

Meanwhile, President Trump is not only maintaining a close relationship with Europe, but also escalating his trade war with China. In a social media post, he threatened to impose an additional 50% tariff if Beijing does not withdraw its own tariff retaliation against the United States. "If China does not withdraw its 34% increase, I will impose additional tariffs of 50% tomorrow. Furthermore, all talks with China will be canceled.", Trump declared.

Domestically, the US president has also publicly directed pressure toward the Federal Reserve (FED), urging it to lower interest rates. Citing a scenario of controlled inflation and falling prices, Trump stated: "This is the PERFECT moment for Jerome Powell to lower interest rates. Stop the politics and act fast!"In a similar message, he added: "This is an IDEAL time to lower interest rates. A great win for America!".

This complex trade dispute scenario is generating considerable uncertainty in global financial markets. US Treasury yields are being impacted, and concerns are growing about a possible economic slowdown or even a recession. The Federal Reserve, for its part, remains cautious regarding the president's demands and has indicated that the imposition of new tariffs could add complications to managing economic stability.