Fair•24 Jan ’24 3:30 PMAuthor: BNR Web Editorial
Should Donald Trump become president again in the upcoming presidential elections, this could have a negative effect on certain European stocks. This is what strategists from Goldman Sachs say. In particular, fears of higher export tariffs for European industry could hurt European share prices.
During Trump’s first, and so far only, period as president of the United States, he imposed import duties on, among other things, the steel and aluminum industries. Europe also came up with countermeasures. These duties have been suspended since Joe Biden took over in the US. The US recently extended the suspension of those duties until December 2025, just as the EU extended the suspension until March 2025.
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Moderate growth
But with Trump as president, things will become more uncertain for the European industry, Goldman Sachs expects. “We expect higher risks around an increase in tariffs for Europe and a reduction in US funding and support for Ukraine,” said Sharon Bell, European strategist at Goldman Sachs.
The strategists see a blueprint for what awaits Europe in Trump’s first term. At that time, the growth of European shares lagged further behind that of the US than during the period when Biden is president.
Sectors where the blow will be less significant are the more defensive stock markets. Goldman Sachs mainly refers to healthcare and non-durable consumer goods. When policy uncertainty increases, stocks from those sectors tend to outperform.
Should Donald Trump become president again in the upcoming presidential elections, this could have a negative effect on certain European stocks. This is what strategists from Goldman Sachs say. In particular, fears of higher export tariffs for European industry could hurt European share prices. (ANP / Associated Press)
