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

Stefano Piserà, Andrea Paltrinieri, Simona Galletta and Flavio Pichler

Economics Letters, 2025, vol. 252, issue C

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.

Keywords: Equity markets; Donald Trump; Abnormal returns; Event study (search for similar items in EconPapers)
JEL-codes: G00 G10 G14 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:252:y:2025:i:c:s0165176525002174

DOI: 10.1016/j.econlet.2025.112380

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