As Trump Tariffs Near, World Braces for Stock Market Spillover

“The definitions of Mexico and Canada are actually the worst possible news of American shares and the American economy,” said Thomas Brienner, head of the stocks at Lazard Fis Gest. “It is bad news for the American Industrial Complex and will raise the costs of car manufacturers and disrupt supply chains.”

The pharmaceutical, steel, copper and aluminum industries are under a microscope, as well as because Trump threatened definitions on them. Industrial manufacturers such as Deare & Co. can And Caterpillar Inc. And Boeing Co. struggle. In particular, Bombardier Inc. The aircraft manufacturing company, as a Canada -based company with manufacturing operations in Mexico that sells its products in the United States.

On the other hand, small stocks are likely to be affected, and thus will benefit competitively, as their operations are usually on a local basis, allowing them to avoid threatening protective economic policies.

China and Asia

On Thursday, the president indicated that he would advance with 10 % import duties on China, but he did not specify the timing.

Foreign investors have escaped almost all regional markets since the US presidential elections, amid the increasing focus on Trump’s “first” policies. A few sectors in Asia have achieved positive returns-the sub-chimneys of materials and facilities have decreased more than 10 % each, while those real estate, consumer foodstuffs and energy fell more than 5 % each.

China’s revenues from Asian chips giants, including Samsung Electronics Co. And Taiwan Semiductor Manufacturing Co. Classes of American conductors, including NVIDIA Corp. And Applied Mateials Inc. And Broadcom Inc. To take great success.

Solar companies also face a great danger because China controls a large part of the supply chain in that industry. Investors will see shares like the largest solar unit maker in the world, the Longi Green Energy Technology, and the Korean battery suppliers in Samsung SDI and LG Chem Ltd. He threatened to eliminate consumer tax credit aimed at enhancing the adoption of the electric car.

Europe

Although the euro area is unlikely to feel immediate pain from Five Trump, it is not completely out of the hook, as the US president indicated that Europe may face its set of tariffs. The Stoxx 600 members generate only 40 % of their revenues within the European Union, with 26 % of North America.

The 10 % customs tariffs will fly on European goods between 1 % and 2 % of the stock profits, according to estimates issued by Citigroup Inc. strategies. Under the leadership of Beata Manthey. The profits are expected to increase by 7 % in Europe and 15 % in the United States this year, based on the current expectations.

Auto industry companies are likely to see a major impact, as companies like Volkswagen AG have manufacturing rules in Mexico. The German auto maker is considering creating a production facility in the United States for its Audi and Porsche brands in response to the definitions. The Stoxx Automobiles & Parts has gained about 5 % this year, which led to twice the performance of Stoxx 600 after losing more than 12 % in 2024, making it the worst performance among the 20 main sectors of the index.

Karen George, director of funds at ECOFI in Paris, said that she recently bought shares in the American waste management company that is not exposed to a trade war. She also holds German exporters. She said that these shares have some exposure to the United States, but they do not have much production and can benefit from the ease of trade tensions.

Other European industries that must be seen from miners, especially steel makers, as well as alcoholic makers such as Remy Cointreau SA and Pernod Ricard SA, which tend to be sensitive to news on definitions.

Martin Frandsen, the global stock portfolio manager in the management of the main assets, recommends companies that make money outside Europe, such as drug makers, as well as some insurance companies that make their defensive properties and high capital returns attractive during times of uncertainty. “In an environment of increased uncertainty, it is useful to be very selective,” he said.

-With the help of Michael Mika.

(Movements of the update index in the fifth paragraph, first planning updates.)

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