Duty-free stocks: How to protect your portfolio from Trump!

Duty-free stocks: How to protect your portfolio from Trump!

Amid charged global trade relations, the influence of the current tariff conflict with the USA is becoming increasingly clear. On July 12, 2025, the issue of duty-free stocks is particularly relevant for investors seeking to protect themselves from the risks posed by US President Trump's policies. faz.net reports that the tariff conflict is negatively affecting many stocks, but there are also some stocks that are less affected by the president's threats. These insights are essential for investors who want to protect their portfolio.

The trade dispute between the USA and the European Union will last through 2025, in which world trade has nevertheless grown. Loud tagesschau.de trading volume increased by $300 billion in the first half of the year, an increase of around 1.7 percent. This is primarily due to an increase in US imports of 14 percent and an increase in EU exports of 6 percent.

Consequences for the European economy

Despite the positive trend in trade, the risks to economic stability in the second half of the year cannot be ignored. UNCTAD warns of a number of threats, including political uncertainties and geopolitical tensions, that could affect trade. The tariff dispute has the potential to develop into a full-scale conflict, particularly affecting powerful European economies such as Germany, Italy and Ireland, which are heavily burdened by existing tariffs.

The decline in exports to the USA is alarming for Germany. These fell by 7.7 percent to 12.1 billion euros, which marks the lowest level in over three years. Trump's recent announcements, including a basic export tariff of 10 percent on almost all EU imports and special tariffs on steel, aluminum and cars, have further exacerbated the situation. The EU Commission considers these tariffs to be unjustified and does not comply with WTO rules.

Future developments and negotiations

President Trump has pushed back the deadline for imposing new tariffs to August 1st. He plans to send a letter to the EU possibly proposing a deal. However, the EU Commission does not expect a comprehensive letter. Ursula von der Leyen, the President of the Commission, has already reiterated her defense of the EU's interests.

Meanwhile, Bernd Lange, chairman of the European Parliament's Trade Committee, spoke about the need to negotiate a limited framework paper. There is no question that a comprehensive solution to existing tariffs and threatened tariff measures is required. Trump is also planning extra tariffs of 50 percent on copper imports and further tariffs on pharmaceuticals and semiconductors, which could further inflame tensions.

Under these circumstances, US Treasury Secretary Scott Bessent expects revenues of over $300 billion by the end of 2025, indicating that the US government is committed to maintaining its trade strategy, despite natural resistance from Europe. The coming months are likely to be crucial for both investors and policy strategists.