The latest Trump tariff threat on Europe is a 30% increase if no agreement can be reached by August 1. Is this just another TACO ploy, or will the US follow through? Nevertheless, some market volatility is expected. But have the markets priced in these Trump swings?
There are always opportunities for investors to buy the dip and make a profit when markets eventually rebound. For example, Nvidia, which dominates the AI tech space, should continue to thrive as long as there is demand for its powerful AI chips in gaming, data centres, and large language models, among other applications.
Europe is not likely to take the tariff hike lying down. Despite Trump’s TACO tactic, they are ready to activate their most powerful trade tool against the US. The French-led effort to deploy Europe’s anti-coercion instrument, backed by several European capitals, is poised to move forward. This tool could grant officials broader power to take retaliatory action.
This could mean possible taxes on US tech giants, targeted curbs on US investment in the EU, or even limiting access to certain parts of the EU market. A further measure could involve restricting US firms from bidding on public contracts in the European Union.
With Trump’s market volatility-inducing antics becoming the new norm for the duration of his term of office, short-term volatility is a reality. But there are always opportunities for investors to buy the dip and invest in solid, stable companies with a good track record of steady returns. Always maintain a diversified portfolio and always consult with a financial adviser before making investment decisions.
EV maker Lucid’s stock skyrocketed after news of a $300 million deal with Uber, in collaboration with self-driving start-up Nuro.
Lucid’s stock rose 40% after the news. Uber plans on buying 20,000 Lucid Gravity SUVs over the next six years to deploy its robo-taxi service. Nuro will provide the software for the autonomous EVs.
The robo-taxi service is expected to cater to higher-end consumers in more upscale cities.
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