Kasia Kliasinska

"The European Union is set to freeze the ratification process of its trade deal with the United States while it seeks more details from the Trump administration." The freezing of trade deals combined with the threat of a new 15% tariff creates immediate economic headwinds for the Eurozone. Uncertainty regarding export conditions to the US (a major trading partner) will likely compress valuations for European equities. Short or Avoid European equities until trade clarity is restored. The Trump administration could successfully reassure the EU, leading to a quick unfreezing of the deal.

"The European Union is set to freeze the ratification process of its trade deal with the United States while it seeks more details from the Trump administration." The freezing of trade deals combined with the threat of a new 15% tariff creates immediate economic headwinds for the Eurozone. Uncertainty regarding export conditions to the US (a major trading partner) will likely compress valuations for European equities. Short or Avoid European equities until trade clarity is restored. The Trump administration could successfully reassure the EU, leading to a quick unfreezing of the deal.