Neil Freiman

At the very least, Europe is now set to block a U.S.

trade deal that had been reached last year, one that reduces tariffs on American goods to zero.

Markets are violently throwing up right now.

Yeah, like look at the companies that were declining yesterday and today, Volkswagen, BMW, Mercedes-Benz, Ferrari, Porsche, big European automakers that sell a lot in the United States.

And then you also have luxury companies from France, LVMH and Kering are down.

And then a lot of pharma companies as well, Novo Nordisk,

And here in Switzerland, their Roche company, I mean, they sell a lot to the United States.

So all of those stocks are down today and they were yesterday in European trading.

Let's talk about Europe's options for retaliating because that's what's happening this week.

All of Europe's leaders are getting together and saying, how do we respond?

Some want more measured response to the United States should these tariffs come to pass.

Some want to go full the nuclear option.

So I'll just talk about the first one.

The first immediate reaction that Europe has is they want to halt the trade deal that was agreed to with the United States last July.

What that trade deal was, was that the EU agreed to remove basically all tariffs on American products.

And in exchange, the EU basically accepted a 15% tariff on most of its exports to the US and 50% on steel and aluminum tariffs.

they're pretty happy to scrap this deal because this was seen as one that the US kind of got one over on them.

So it doesn't take a lot for them to say this trade deal is going to be off, but they have other options on the table as well.

This analysis found that overwhelmingly American importers and consumers are paying for the tariffs.

German based Kiel Institute, they just released this report,