Work

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

Year: 2025

Type: article

Abstract: 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.

Source: Economics Letters

DOI: 10.1016/j.econlet.2025.112380

Authors: Stefano Piserà, Andrea Paltrinieri, Simona Galletta, Flavio Pichler

Institutions: University of Genoa, Università Cattolica del Sacro Cuore, University of Catania, University of Verona

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,030