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Trump's tariffs: Unpacking the EU's market reaction

Research output: Contribution to journalArticle

Abstract

This paper explores the effect of 26 February 2025 Trumps' tariffs announcement against Europe. As a mean of event-study analysis, we find that the announcement led to a reduction of firms' abnormal return (AR), raw return and cumulative abnormal return (CAR) listed on the EU STOXX 600, and that its effect changes according to firms' operating industry and size. Our results confirm the EU market dependence from US policies, warning about its vulnerability.
Original languageEnglish
Pages (from-to)1-5
Number of pages5
JournalEconomics Letters
Volume252
Issue numberGiugno
DOIs
Publication statusPublished - 2025

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Keywords

  • Abnormal returns
  • Donald Trump
  • Equity markets
  • Event study

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