Barclays: US tariffs on the EU will once again test the resilience of US stocks.

Barclays analysts stated in a research report that the threat of the United States imposing a 30% tariff on the European Union will once again test the resilience of the US stock market. Analysts said that if the EU retaliates and the economy falls into a deeper recession, the stock market could see a double-digit decline. If a full-scale trade war breaks out, a sharp drop similar to the post-"D-Day" market crash may occur - at that time, cyclical stocks and financial stocks performed the worst, and the lack of summer market liquidity could exacerbate the situation, they wrote. Analysts remain skeptical about tariffs remaining at such high levels. They stated that Trump's tolerance for pressure on the stock and bond markets appears to be limited. They added that this may limit the level of tariffs he ultimately imposes on the United States' major trading partners.