Trump's "strategic uncertainty" continues to hit the US economy

Americans are often very adept at marketing. Whether Treasury Secretary Scott Bessent's (63) explanation on Tuesday, that "strategic uncertainty" is a natural part of tariff negotiations, will assuage the current tariff concerns of US business leaders, is more than questionable.

After several days of rising stock prices, warning signals from US companies returned on Tuesday, causing stock prices on the US stock exchanges to fall. Automaker Ford , for example, expects tariffs to cost $1.5 billion and, given the uncertainty, declined to issue a forecast. Toy manufacturer Mattel also declined to make any statements about the future in light of the current situation.

Although Bessent had indicated on Tuesday that possible trade agreements could be concluded later this week, he did not provide details on which countries were involved. According to him, the US is currently negotiating with 17 major partners. However, he stated that there are currently no negotiations with China .

The tariff threats are already having an impact on the US trade balance. According to figures released Tuesday by the US Department of Commerce, the US trade deficit rose to a record $140.5 billion in March due to forward imports—an increase of a whopping 14 percent.

In Europe, the EU Commission and Great Britain are adapting to the new realities. According to a report by the news agency Bloomberg, the EU is considering additional tariffs on US goods worth $100 billion if no agreement is reached in the tariff dispute with the US.

Possible retaliatory measures are to be presented to the member states on Wednesday. However, it will likely take at least another month before a decision on a final list is reached, the news agency reported, citing sources familiar with the matter.

"We do not feel weak," emphasized EU Trade Commissioner Maroš Šefčovič (58) on Tuesday before the European Parliament. No solution that would be unfair to the EU side should be accepted, he explained, pointing to strong interest in various economic regions. Negotiations on free trade agreements are already underway with India , Indonesia, Thailand, and Malaysia. However, some of these have been ongoing for many years, with no sign of a quick agreement recently.

The President's new US tariffs currently affect 70 percent of European exports to the US, Sefcovic told members of the European Parliament. This could rise to 97 percent if additional sectors are targeted. The US is also threatening special tariffs on pharmaceutical products and semiconductors, among others.

Meanwhile, Great Britain and India announced the conclusion of a far-reaching free trade agreement on Tuesday. It is an "ambitious and mutually beneficial agreement that will help "promote trade, investment, growth, job creation, and innovation in both our economies," Indian Prime Minister Narendra Modi (74) said on Tuesday on the online service X. British Prime Minister Keir Starmer (62) spoke of a "landmark" agreement.

The agreement will reduce 85 percent of Indian tariffs on British imports to zero over the next ten years. Import surcharges on whisky and gin will be reduced from 150 percent to 75 percent, and after ten years, they will be reduced to just 40 percent. Tariffs on British cars will be reduced to 10 percent up to an unspecified level of more than 100 percent. In return, Britain will reduce tariffs on imports of clothing, footwear, and food products such as frozen shrimp from India.

However, given the tense global situation, the news did not trigger any real jubilation on the British stock exchanges.