Distrust dominates the markets over Trump's potential tariffs on Europe

PanicSeller69 · 2026-01-31T13:16:15+00:00

Financial operators are skeptical about the implementation of tariffs proposed by Trump on Europe, with only 17% believing in their realization. The TACO strategy suggests that these threats are more tactical than definitive, although there may be volatility if the situation changes.

PanicSeller69

2026-01-31 13:16:15

Abstract generation in progress

Skepticism characterizes the current sentiment of financial operators regarding the tariff measures proposed by U.S. President Donald Trump against Europe. Market expectations reveal a widespread caution about the possibility that these trade policies will materialize in the coming days.

Only 17% of operators believe in full implementation

According to data from NS3.AI, only 17% of traders project that Trump’s proposed tariffs on European partners will come into full effect before February 1. This percentage reflects deep skepticism within the investing community regarding the realization of these tariff threats. Most market participants maintain the expectation that the U.S. president might retract his harsher positions.

The TACO strategy supports market expectations

Analysis of the strategy known as TACO demonstrates widespread confidence that investors expect a withdrawal of trade threats. This approach reflects how markets interpret political moves, based on historical trading patterns and political signal analysis. The prevailing skepticism suggests that many operators see these threats more as negotiation tools than as definitive policies.

Analysts warn of latent volatility

Experts from institutions like Deutsche Bank and UBS observe that, although markets maintain a rational reaction to current trade tensions, there is potential volatility that could be triggered if the situation develops unexpectedly. Analysts emphasize that the current market calm should not be interpreted as indifference, but as a measured assessment of risks. Skepticism about the full implementation of tariffs remains the dominant factor shaping investor behavior in these moments of trade uncertainty.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.