Financial markets, which have shown increasing insensitivity to tariff threats from the US, will face a test at the Monday open after President Donald Trump declared a 30% rate for the European Union and Mexico effective Aug.

FINANCIAL markets, which have shown increasing insensitivity to tariff threats from the US, will face a test at the Monday open after President Donald Trump declared a 30 percent rate for the European Union and Mexico effective August 1.

Analysts including Deutsche Bank’s Jim Reid and Goldman Sachs’ Sven Jari Stehn suggest Trump's sharp escalation is more likely a negotiation tactic than a firm policy shift.