the CAC 40 weighed down by Donald Trump, France and Europe soon in its sights?

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– Chinese stock markets held up on Tuesday, despite Donald Trump's announcements.

Around 9:30 a.m., the flagship index of the French financial center, the CAC 40lost 0.88% to 7,193.39 points. On Monday, it finished in balance (+0.03%), at 7,257.47 points. Donald Trump confirmed Monday that his first economic measures after his inauguration in January will be to increase customs duties on products coming from China, Canada and Mexico, decisions he justifies by the crises linked to opiates and 'immigration. He wants to impose customs duties of 25% on all products from Mexico and Canada, he wrote on his Truth Social network.

In a separate post, Donald Trump also announced an increase in customs taxes of 10%which is added to those already existing and to those additional that he could still decide on “all the many products arriving from China to the United States“. If for the moment, Europe is not yet targeted, investors fear that it will follow, underlines John Plassard, investment specialist for Mirabaud.

The CAC 40, particularly exposed to Chinese consumption

The increase in customs duties, which he often described as his “favorite expression» during his campaign, is one of the keys to the future economic policy of the president-elect, who is not afraid of relaunching trade warsparticularly with China, started during his first mandate. The Parisian market, and especially its flagship CAC 40 index, is particularly exposed to Chinese consumption, with companies in the luxury sector representing more than 25% of its market capitalization.

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However, Chinese stock markets held up on Tuesday, with some investors expecting even higher customs duties, but also “thanks to hopes that the new threat of tariffs would trigger a greater policy response from the Chinese government», Estimates Ipek Ozkardeskaya, analyst at Swissquote.

The automobile industry is suffering on the stock market

Already very affected by the slowdown in the Chinese economy, the automobile sector is particularly suffering from Donald Trump's announcements on customs duties. Moreover, “there is no reason for Trump to spare Europe», insists Alexandre Baradez, head of market analysis at IG France interviewed by AFP. The manufacturer Stellantis lost 4.51% to 12.23 euros around 9:45 a.m. and Renault lost 1.80% to 39.21 euros around 9:30 a.m.