Stellantis falls after Trump's tariff demand
The shares of Stellantis $STLAM (-1.27%) recently took a hit after President Trump called for a drastic 50% tariff on goods from the European Union. The announcement sent the company, which sells popular car brands including Chrysler and Fiat, down about 5%. Trump spoke out on Truth Social and made it clear that the EU is causing difficulties and negotiations have stalled. In an additional review, Stellantis reported a 14% drop in sales in the first quarter compared to last year. The uncertainty surrounding tariffs has led the company to refrain from forecasting future profits, adding to the strain.
Apple under pressure from possible tariffs
Shares in Apple $APPLE (-0.79%) shares have also lost value after Trump hinted at imposing a tariff of 25% or more on internationally produced iPhones. Although Apple is already taking steps to move some production to India, an iPhone made in the US could cost up to $3,500 - an exciting but worrying prospect for the company. Analysts point out that a full-scale relocation of production to the US could take years, which only adds to the uncertainty for Apple. In addition, rising prices could have a significant impact on consumer purchasing decisions, which would pose a serious challenge for the company.
Intuit benefits from strong quarterly figures
In contrast to the problems at Stellantis and Apple, Intuit $INTU (-0.37%) recently saw its shares rise by around 7.5%. The company presented better-than-expected results for the third quarter and attributes its success to targeted investments in AI products, which have had a positive impact on tax results. Thanks to these developments, the forecast for revenue growth was raised from 12% to 15%, underlining Intuit's positive turnaround and forward-looking direction.
European luxury industry under pressure from US tariffs
On Friday, European luxury stocks suffered a severe setback after President Trump announced his intention to recommend a flat tariff of 50% on goods from the EU from June 1. Renowned brands such as LVMH and Hermes suffered declines of around 3% and 4% respectively. The luxury industry is heavily reliant on the US market, which is seen as a key growth opportunity, while demand from China is slowing. Analysts emphasize that the industry has limited options to relocate production to the US, which could further increase the impact of tariffs. The French and Italian luxury industries in particular, which export a significant proportion of their products to the USA, are now facing major challenges.
Sources:
https://finance.yahoo.com/video/stellantis-apple-fall-tariff-threats-133726420.html
https://finance.yahoo.com/news/trumps-tariffs-hit-european-luxury-132718525.html