IEV

iShares Europe ETF

As tariff tensions ease and investor sentiment improves, global ETFs like ACWI are poised for a rally.

Earlier this month, Trump threatened 30% levies on imports from the EU in a letter to the European Commission President, Ursula von der Leyen.

The sector-wise breakup revealed that about $77 billion worth of U.S. industrial imports and $7 billion worth of agricultural and food product imports would be brought under the tariff net.

In its response, the European Commission said imposing 30% tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers, and patients on both sides of the Atlantic

Among the other concessions discussed are a reduction of the 25% tariffs imposed by the U.S. on auto and auto parts and the 50% rate that applies to steel and aluminum.

The EU is also seeking relief from existing U.S. tariffs on autos, steel, and aluminum and has prepared retaliatory measures in case talks collapse ahead of the July 9 deadline.

The official said the main issue between Europe and the United States is about European defence, and the two nations should focus on that.

An economist warned that if the U.S. were to push for a 20%-30% blanket tariff on EU goods, the latter would have no choice but to retaliate with countermeasures.