On July 14, according to Jinshi Data, Barclays analysts said in a research report that the U.S. threat to impose a 30% tariff on the EU will once again test the resilience of U.S. stocks. Analysts say that if the EU takes retaliatory measures, coupled with a deeper economic recession, the stock market may experience a double-digit decline. If a full-blown trade war breaks out, it may reproduce the post-'Liberation Day' plunge - when cyclical and financial stocks performed the worst, and insufficient market liquidity in the summer may exacerbate the situation, they wrote. Analysts remain skeptical that tariffs will remain at such high levels. They said that Trump's tolerance for pressure on the stock and bond markets (and thus damage to the U.S. economy) appears limited. They added that this may limit the level of tariffs he ultimately imposes on major U.S. trading partners. [Deep Tide TechFlow]

Barclays: US Tariffs on EU to Test Resilience of US Stocks Again