President Donald Trump just announced a deal with the EU.
Trump and Von Der Leyen announced they reached a deal which will see the US impose 15% tariffs on EU exports including cars.
Europe also provides a (soft) commitment a-la-Japan to invest in US military equipment and energy.
It seems that Trump has pivoted towards a strategy that:
- Secures “workable” tariff rates that don’t look like a trade embargo, hence maximizing “tariff $ income”
- Removes uncertainty from markets
- Removes uncertainty on the Fed which now knows what the tariff rates are on the largest US trade partners
The biggest beneficiaries of the recently announced deals should be the most under-owned assets in Europe and Asia.
Currencies and equity markets of places like Poland, Czech, Indonesia, etc are interesting places to look into.
Do you think these deals will further propel US stock markets higher?
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