Recent changes in the trade situation have once again triggered market nerves. The planned tariffs against 8 EU countries (Denmark, the UK, France, Germany, etc.) scheduled for February 1st were suddenly canceled, and the story behind it is more complicated than it appears on the surface.

How fierce is the EU's retaliation? They directly listed a €93 billion retaliatory tariff list and also plan to activate the so-called "Counter-Coercion Tool," even freezing previously negotiated trade agreements. This hardline stance has instantly elevated the risk of a trade war to a dangerous level.

The market was the first to feel this pressure. On January 20th, global assets experienced a massive sell-off, with US stocks falling more than 3%. European exporters (especially Germany's automotive industry) faced potential losses exceeding $71 billion—this figure is based on data from the EU's statistical office. The reaction of the financial markets has already spoken volumes.

Interestingly, once the tariff threat was lifted, US stocks rebounded nicely in the late trading session, with the Nasdaq surging over 1.5%. This stark contrast clearly indicates that the real focus is not on the trade war itself, but on the stock market trends. After all, someone explicitly said that the stock market is his report card. Under this logic, the market appears to be particularly sensitive.