European CEOs are worried about Trump’s talk of tariffs.

European CEOs are showing heightened concern compared to their American counterparts regarding the potential impact of Donald Trump’s pledge to levy tariffs on all imports if he wins the White House again. Mentions of “tariff” on earnings conference calls in Europe have experienced a significant increase, surpassing the frequency of mentions on US earnings conference calls by a ratio of 5 to 2 in October.

The United States is the European Union’s largest trading partner, with total trade amounting to $960 billion in 2023, according to data compiled by CEOWORLD magazine. Investors, financial consultants, market strategists, economic advisors, and macro-market commentators consider a Trump victory the worst outcome for European equities due to his intention to restrict imports into the U.S. Potential tax increases under a Kamala Harris administration could give European stocks the upper hand. This is due to the fact that they would diminish S&P 500 company earnings, potentially reducing their appeal to global investors.

The resurgence of tariff talk is troubling for many European businesses.

In his rally speeches, Trump has been clear about his intention to impose tariffs of 10 percent or 20 percent on all countries, regardless of whether they are allies or not, if he is re-elected. He has specifically singled out Europe, particularly Germany’s car industry, as a target. His goal is not only to reduce America’s trade deficit by imposing significant tariffs on European goods, but also to dismantle European industry and pressure companies to move their factories to the U.S.

Have you read?
World’s Most Innovative Countries, Best Fashion Schools. Best Universities. Best Medical Schools. Best International High Schools. Countries: Most Female Billionaires.