Intro

This chapter explores the effects of U.S.-EU trade negotiations on global markets, particularly in light of President Trump's tariff delays. The discussion includes market reactions, initial declines, subsequent recoveries, and strategies for investors to handle potential volatility.

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Episode notes

Michael Field, European Market Strategist at Morningstar Holland, talks about tariff risks for key sectors and European stock performance as market volatility persists.

On this episode:

President Trump pushed his tariff deadline from July to August. How are global markets reacting to the uncertainty during this tariff watch?

The EU is one of America’s largest trading partners. How important is it for these two sides to strike a deal?

And what’s at stake if they don’t before the deadline?

More than two dozen countries make up the EU. The bloc is seeking lower tariffs for a variety of sectors like aircraft, car parts, and spirits. Talk about that.

So, what sectors do you think could be hit the hardest, and which ones could be spared?

The EU has presented a united front. However, some countries want a trade deal sooner than later. Can you talk about the debate you’re witnessing in Europe?

Trade deals typically take years to be implemented, so any announcement would be a preliminary agreement. If a US investor has European companies in their portfolio, what would this framework mean for them in the long-term?

Let’s shift to this year’s market performance of European stocks. What’s been winning?

Which European stocks do Morningstar analysts consider undervalued, and why?

Read about topics from this episode.

What’s Morningstar’s Outlook for Europe in 2025?

Why It’s Not Too Late to Add International Exposure

What Investors Need to Know About Tariffs

Here Are the Sectors and Industries That Are Vulnerable if Reciprocal Tariffs Come Back

Where Next for European and UK Stock Markets in 2025?

Best International Companies to Own: 2025 Edition

Find Morningstar's complete collection of tariff-related articles and analysis here.

What to watch from Morningstar.
Market Volatility: 4 Key Factors to Track in Q3 2025

Is the International Outlook Brighter Than the US?