EU Parliamentary Delegation to the US Chair Benifei says he will call for the European Commission to bring out the "trade bazooka", as they need a mechanism that makes violating trade agreements too costly for the US

This statement signals a potential escalation in EU-US trade tensions, as the call for a "trade bazooka" indicates an intention to implement strict measures against trade violations by the US. Such rhetoric could lead to increased volatility in the markets, particularly in sectors reliant on transatlantic trade, and may also influence broader risk sentiment as investors assess the implications of heightened economic conflicts.