Trump Tariffs? Europe Braces but Has No Clear Strategy

Published On Dec 20, 2024, 3:18 AM

President-elect Donald Trump has threatened to impose tariffs on Europe unless they increase their purchases of U.S. oil and gas. This has led to concerns about a potential trade war between the U.S. and Europe, with European officials struggling to form a coordinated response due to internal political challenges. While some officials support retaliatory measures, others favor negotiation, resulting in divisions over how to handle Trump's ultimatum.

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Stock Forecasts

XLEView XLE chart on TradingView

Negative

In light of Trump's threats, companies with significant business ties to Europe may face increased uncertainty and potential cost increases due to tariffs. This could negatively impact U.S. energy companies if Europe does not comply with oil and gas purchases to avoid tariffs.

SPYView SPY chart on TradingView

Negative

The uncertainty surrounding trade relations could lead to a pushback from European manufacturers, which may reflect poorly on U.S. companies that rely heavily on exports to Europe.

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