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BUZZ-Barclays weighs in on potential tariff risk for Europe if Trump wins
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BUZZ-Barclays weighs in on potential tariff risk for Europe if Trump wins

** Barclays sees an up to high single-digit percent hit on European earnings if Donald Trump wins the U.S. presidential race and in the event of a full-blown trade war

** "A Trump win may raise concerns of a full-blown trade war," the British bank's strategists say in a

** While the direct impact to potential U.S. tariffs on Europe should be small, the second-order impact through lower growth and higher inflation could be more severe, they say

** "Our economists estimate a -2.0%, -1.4% and -0.7% hit to GDP for China, the US and the euro area, respectively, in the event of Trump implementing 10% tariffs globally and 60% tariffs on Chinese goods" - Barclays

** Barclays sees capital goods, autos, beverages, semis and chemicals as most at risk from potential tariffs due to their higher exposure to the U.S.

** It says its basket of European tariff-exposed stocks has been tracking the likelihood of a Trump election win, before recently lagging

** Still, it adds some of the tariff risks are partly reflected already in the stock prices and may be priced out if Democratic Vice President Kamala Harris continues to gain momentum in the polls


(Reporting by Anna Pruchnicka)

((anna.pruchnicka@tr.com))

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
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