The European Parliament has postponed ratification of the EU\u2013US trade deal due to concerns that a new unilateral 15% US tariff breaches the Turnberry accord agreed last summer. Trade tensions remain elevated following the delay.<\/p>\n
China has urged Washington to remove unilateral tariffs, while India has delayed planned trade talks. The UK has warned that it may respond if the US does not honour their 10% tariff deal.<\/p>\n
A new global tariff framework begins today at 10%. The US administration is working towards raising the global tariff to 15% under a separate order that President Trump has not yet signed.<\/p>\n
President Trump is due to deliver the annual State of the Union speech overnight European time. The article was produced using an AI tool and reviewed by an editor.<\/p>\n
The breakdown of the EU-US trade deal signals a period of higher market volatility, and we should prepare for sharp swings in the coming weeks. We saw this playbook in 2025, when initial tariff threats caused the VIX, the market’s fear gauge, to jump by over 15% in a single week. Options traders should consider strategies that profit from rising volatility, such as buying calls on the VIX or using straddles on major indices ahead of Trump’s speech.<\/p>\n
In equity markets, we anticipate specific sectors like European auto manufacturers and US technology firms with complex global supply chains will be hit the hardest. Just last year, reports of progress on the “Turnberry accord” boosted shares in companies like Volkswagen and Caterpillar by an average of 4%, gains which are now at risk of being completely erased. Traders could look at buying put options on industrial and semiconductor ETFs, like the XLI and SOXX, which historically underperform during trade disputes.<\/p>\n
On the currency front, the US dollar may strengthen in the short term as a safe-haven asset, while the Euro is likely to face renewed pressure. The EUR\/USD exchange rate has already fallen 0.5% to 1.0750 in overnight trading, reflecting the market’s immediate concern. We remember from the trade conflicts in the late 2010s how the Chinese Yuan weakened significantly against the dollar, and a similar pattern could emerge for the currencies of major US trading partners.<\/p>\n
Commodity markets, especially industrial metals and agriculture, will be directly in the line of fire. Retaliatory tariffs are often aimed at these politically sensitive goods; for instance, US soybean futures dropped nearly 20% in 2018 after China imposed its own tariffs. We should watch for unusual activity in steel, aluminum, and agricultural futures, as these are likely to be the first assets to react to any escalation.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" European Parliament delays EU\u2013US trade deal ratification as new 15% US tariff stokes global tensions.<\/p>\n","protected":false},"author":62,"featured_media":17028,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-42681","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/42681","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=42681"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/42681\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/17028"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=42681"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=42681"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=42681"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}