Last Friday, the US president Donald Trump announced new tariffs on China. he said that the US will increase existing tariffs by 5% on Chinese goods. There have been many tariffs and announcements since Trump started them more than a year ago, so it’s hard to keep up. Anyway, Donald Trump has softened the tones today. He has posted a couple of tweets, which are below, so you can judge by yourself:

• “Anything is possible” about possible China tariffs delay
• US is in a much better position now than at any time in negotiations with China

“Great respect for the fact that President Xi & his Representatives want “calm resolution.” So impressed that they are willing to come out & state the facts so accurately. This is why he is a great leader & representing a great country. Talks are continuing!”

• Trump hopes he doesn’t have to consider tariffs on German cars
• G7 summit has been productive
• Says discussed a trade deal with the EU
• Says EU is as tough as China on trade
• The US has lost a lot of money over the years from the EU

So, apart from China, the EU is also in danger of trade tariffs. This would be the killing blow to the Eurozone and particularly German economy, considering that the manufacturing sector is already in deep recession. But, there’s still hope, as the tones from these comments suggest which is helping the risk sentiment in financial markets.