From Morningstar: 2024-11-07 06:02:39

Several new tariff proposals have been discussed in the US, including a general tariff of 10% to 20% on imported goods, a 60% tariff on imports from China, and a 200% tariff on vehicles from Mexico. The European Union (EU) is highly affected by US tariffs, with 20% of EU exports going to the US in 2023.

Pharmaceutical products, motor vehicles, and chemical products are the most affected by potential US tariffs from the EU. The direct impact of US tariffs would lead to a decline in EU export volumes, with higher trade costs potentially being offset by a weaker euro. European automotive and pharmaceutical industries are at high risk, with some mitigation measures in place.

Not all cars sold by European automakers are made in Europe, and many companies that produce vehicles in the US would likely be exempt from tariffs. The short-term impact of US tariffs on the European pharmaceutical sector would be different, with inelastic demand potentially leading to a smaller impact on sales. Investment and production may shift to the US over time in both industries. 1. The CDC reports a rise in COVID-19 cases among children, with hospitalizations increasing by 32% in the past month. This surge is attributed to the Delta variant and low vaccination rates among kids.

2. The Federal Reserve announces plans to begin tapering its bond-buying program, potentially raising interest rates in 2022. This decision comes as the economy shows signs of recovery from the pandemic.

3. Tesla’s revenue surpasses expectations, reaching $11.96 billion in the second quarter of 2021. The company delivers a record number of vehicles despite ongoing supply chain challenges.

4. The UN warns of a humanitarian crisis in Afghanistan as the Taliban advances, displacing thousands of civilians. Aid organizations are struggling to provide assistance amid escalating violence and instability.



Read more at Morningstar: What a Trump Victory Means for European Automotive…