Donald Trump threatens 'out of line' EU with tariffs

Published On Feb 3, 2025, 12:40 AM

US President Trump has indicated that tariffs on the European Union (EU) could be imposed soon, following similar measures on Mexico, Canada, and China. He argues that these tariffs are necessary to balance the trade deficit, citing that the EU imports far more from the US than it exports. Trump's comments led to a decline in the UK’s FTSE 100 index and shares of major European carmakers, which fear the impact of such tariffs on their exports to the US. The EU has condemned these potential tariffs and warned of firm responses, while Mexico and Canada plan retaliatory measures.

Stock Forecasts

STLA

Negative

Falling shares in car manufacturers like Volkswagen and Stellantis indicate that the market is anticipating negative repercussions from possible tariffs. Investors should be cautious about these stocks in the short term, as they may continue to face downward pressure from market sentiment.

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