Analysts: Trump's weekend tariffs again challenge market resilience

Analysts said financial marekts, increasingly insensitive to the threat of US tariffs, would face a test at the start of trading on Monday, after Mr. Trump announced at the weekend that he would impose 30 per cent tariffs on the European Union and Mexico from August 1. Mr. Trump has recently ramped up trade measures, promising to impose more tariffs on everything from Canada to Brazil to Algeria and inviting trading partners for further talks. Despite warnings from JPMorgan chief executive Dimon and others not to be taken lightly, investors have so far reacted as if they were counting on the US president to back down again, having seen the previous U-turn. Brian Jacobsen, chief economist at Annex Wealth Management, said: "Investors should not just take Trump's threat of 30 per cent tariffs on European Union goods as a bluff, this level is punitive but could hurt the European Union more than the US, so the clock is ticking down."