LIVE MARKETS-What if 50% tariffs on Europe are held...

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WHAT IF 50% TARIFFS ON EUROPE ARE HELD...

The broad selloff triggered by Donald Trump's surprise announcement of a potential 50% tariff on European goods has already reversed after the U.S. President's latest U-turn. The DAX, for example, hit another record high this morning.

But what would be the impact if such levies were indeed implemented?

Citi has done the math.

According to strategist Beata Manthey at the U.S. bank, if such a tariff were fully implemented, European EPS growth for 2025 could fall by an additional 5-6 percentage points from current forecasts, leading to an overall decline of around 4%.

"This comes against the backdrop of the market pricing in c4% EPS growth over the next 12m. If the new tariff announcements are to be followed through, the Stoxx600 Index could fall c7-8% from here to price it in," she warns.

(Danilo Masoni)

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