Trump says 25% tariffs on EU will be announced soon

The announcement of new tariffs on European goods, especially cars, could lead to increased costs for US consumers and potentially retaliatory measures from the EU, which may affect trade relations negatively. Given the uncertainty in trade policies and the potential for further tariffs, investor sentiment might lean negatively toward related sectors.

The potential tariffs on cars could impact major automotive manufacturers which conduct significant business in Europe. Companies heavily reliant on exports to the EU might see their stock prices drop in anticipation of higher costs and reduced sales. Investors could prepare for further volatility in stocks related to manufacturing and exports if this situation escalates.