While Trump near the rates, world brackets for the land market overflow

“The rates about Mexico and Canada are actually the worst possible news for US shares and the American economy,” said Thomas Brenier, head of shares at Lazard Freres Gestion. “It is bad news for the American industrial complex and will seriously increase the costs for car manufacturers and disrupt supply chains.”

The pharmaceutical, samples, copper and aluminum industry have also been under a microscope since Trump endangered the rates. Industrial manufacturers such as Deere & Co., Caterpillar Inc. and Boeing Co. Being able to struggle. In particular, aircraft maker Bombardier Inc. Uniquely positioned as a company located in Canada with production activities in Mexico that sells its products in the US.

On the other hand, small CAP shares will probably not be influenced and therefore competitive, because their activities are usually based in their own country, so that they can prevent the threat of protectionist economic policy.

China and Asia

The president indicated on Thursday that he would continue with 10% import tasks on China, but did not indicate timing.

Foreign investors have fled almost all regional markets since the US presidential elections in the midst of increasing focus on the policy of “America of” America of Trump. Few sectors in Asia have achieved a positive efficiency and the substances for materials and utilities have each dropped more than 10%, while those of real estate, staples for consumers and energy each have fallen by more than 5%.

The Chinese income of Asian chip giants, including Samsung Electronics Co. And Taiwan Semiconductor Manufacturing Co., have been brought to the attention, because the US rules make harder rules to keep advanced chips out of China’s reach. Manufacturers of American semiconductors, including Nvidia Corp., Applied Materials Inc. And Broadcom Inc. can also get a hit.

Solar companies also run a considerable risk, because China controls a large part of the supply chain of that industry. Investors will watch shares such as the world’s largest maker of the solar module, Longi Green Energy Technology Co. And his smaller Peer Ja Solar Technology Co. Korean EV -battery suppliers such as Samsung SDI Co. and LG Chem Ltd. His focus also threatened to eliminate a tax credit for consumers, aimed at stimulating the acceptance of electric vehicles.

Europe

Although it is unlikely that the region of the euro immediately feels pain from Trump’s taxes, it is not entirely off the hook, because the US president has indicated that Europe can get its own rates. Members of the Stoxx 600 index generate only 40% of their income within the EU, with 26% from North America.

Rates of 10% on European goods would shave between 1% and 2% discount on profit per share, according to estimates of Citigroup Inc. -Tratches led by Beata Manthey. The income is expected to increase by 7% this year and 15% in the US, based on current projections.

Automakers would probably see a significant impact, because companies such as Volkswagen AG have production bases in Mexico. The German car manufacturer is considering setting up a production facility in the US for his Audi and Porsche brands in response to the rates, Handelsblatt reported this week. The Stoxx Automobiles & Parts Index has been won around 5% this year, and performs the Stoxx 600 somewhat chasing after losing more than 12% in 2024, making it the worst performer below 20 main sectors of the index.

Karen Georges, a fund manager at Ecofi in Paris, said that she recently bought shares in an American waste management company that has no exposure to a trade war. She also has German exporters. Although these shares have some exposure to the US, they do not have much production there and they can benefit as trade tensions become easier, she said.

Other European industries to look are miners, especially steel makers, as well as makers of alcoholic beverages such as Remy Cointreau SA and Pernod Ricard SA, which are usually sensitive to news about rates.

Martin Frandsen, Global Equities Portfolio Manager at Principal Asset Management, recommends companies that earn money outside of Europe, such as pharmaceutical makers, as well as certain insurance companies whose defensive characteristics and high capital returns make them attractive in times of uncertainty. “In an environment of increased uncertainty, it pays to be very selective,” he said.

-With the help of Michael Msika.

(Updates Index movements in the fifth paragraph, updates the first graph.)

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