At the beginning of the week, US President Donald Trump threatened to put 30% tariffs on imports from Mexico and the European Union, which caused gold prices in Dubai to reach a three-week high. At the start of Monday’s Dubai market opening, the 24K was worth Dh404.75 per gramme. Due to the increased costs, many consumers on a tight budget are delaying their purchases until the prices decrease to a more affordable level
Senior economist at Swissquote Bank Ozkardeskaya stated that Trump proceeded to unveil tariffs over the weekend, declaring that Mexico and the EU will be subject to 30% duties starting on August 1.
The EU was not prepared for that amount at all. With certain exclusions for important industries like metals and pharmaceuticals, they were looking for a tariff of 10%, which is more in line with the amount that the UK was able to get. He remarked, “Instead, they received a fat thirty percent.”
Despite Trump does allow for further talks and some tweaking, considering the magnitude of tariffs announced since last week, you have to question if it’s worth the time and effort to engage in conversations with a government that seems to have lost its mind.
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