US President Donald Trump rattled futures markets with his new trade war against Canada and Mexico with the S&P500 futures falling by more than 100 points and 1.8% during the weekend before futures markets opened on Monday. President Trump has ordered tariffs on Canada, Mexico and China with Canada and Mexico retaliating in kind with tariffs of their own.
The Euro also opened up to 1.9% down against the US Dollar and is now trading at around $1.022. Traders are expecting more downside in the Euro currency as President Trump breaks Europe’s winning streak in the stock market with an incoming trade war against the European Union. President Trump promised to hit the EU with tariffs.
The European Union has a lot to lose with a trade war against the US because it has a significant trading surplus with the US. In 2023, the EU had a trade surplus with the US of €158 billion. In 2023 EU exported €502 billion in goods to the US, while imported only €344 billion. Most of the US imports to the EU are oil, pharmaceuticals and medicines, and natural gas in that order followed by engine parts and vehicle parts. The top EU export products to the US are pharmaceutical and medical products, car parts and medicines in that order. The Netherlands, Germany and France are the biggest importers of US products in the EU. Germany, Italy and Ireland are the biggest European exporters to the US.
The EU has so far not responded to President Trump’s threats about new tariffs, but an EU Commission spokesperson told a European press outlet that the EU would “respond firmly” against any trading partner instituting tariffs.
Newsroom
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