European companies’ rising market capitalization: a response to Trump’s plans for a “moderate” tariff increase

The announcement on January 6, 2025, that the Trump administration may impose tariffs only on “critical imports” instead of all imported goods has aroused considerable interest among European investors.

Although no specific list of goods to be increased was announced, the European stock market reacted optimistically: shares of German Daimler Truck and Italian-American Stellantis rose by 4.5%.

Investors’ reaction to automotive companies on the stock market indicates expectations that the automotive sector may be excluded from the list of “critical imports.”