FEAR & GREED | Business News Tariff wars vs Europe's moment vs China's rise
Dec 25, 2025
The hosts dive into the significant impact of tariff wars on global markets, particularly following Trump's tariffs. They discuss how these tariffs may overshadow longer-term shifts, especially Europe’s resurgence as a key player in diplomacy and green initiatives. The conversation turns to China, analyzing its increasing influence in the Indo-Pacific and the tension with Taiwan. Ultimately, tariffs are crowned as the defining story of the year, while Europe and China follow closely behind.
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Trump’s 'Liberation Day' Market Shock
- Michael Thompson recounts 'Liberation Day' when sweeping tariffs were announced on April 2 and markets plunged sharply that day.
- He describes subsequent one-day falls of about 5% and how markets later recovered as countries struck deals with the US.
Markets Rebounded After Tariff Deals
- Michael Thompson notes markets recovered quickly after initial tariff shocks as countries negotiated deals with the US.
- He highlights that markets later reached record highs despite the earlier turmoil.
Europe’s Rising Strategic Moment
- Sean Aylmer argues the tariff shock may be this year's defining story but sees a deeper, longer-term shift toward Europe.
- He predicts 2025 marks the start of a 'golden age' for Europe driven by fiscal boosts, diplomacy, and green leadership.