ASML Holding NV shares took a significant hit after Donald Trump’s victory in the 2024 U.S. presidential election, fueled by concerns over renewed trade tensions and potential tariffs on Chinese goods. Trump’s proposed policies threaten to disrupt ASML’s global supply chain and impact its reliance on the Chinese market, raising significant uncertainty for the company’s future.
Wall Street’s major indices took a tumble on Thursday, July 18, as a resurgence in tech stocks faltered, exacerbating losses fueled by worries about renewed trade tensions. The Dow Jones Industrial Average, which had set records for three consecutive days, dropped 533 points, or 1.3%, from its all-time high set the previous day. The Nasdaq Composite dipped 0.7%, losing 125.7 points to close at 17,871.22. The S&P 500 slid 0.8%, shedding 43.68 points to finish at 5,544.59, continuing its retreat from the peak reached on Tuesday, July 16.
Chinese Premier Li Qiang delivered a strong message at the World Economic Forum in Dalian, warning that economic decoupling among nations could have devastating global consequences. He defended China’s industrial policies against accusations of overcapacity and cheap goods dumping, emphasizing the importance of cooperation over competition. These statements come amid rising trade tensions with the US, Canada, and the EU, all of which have imposed or are considering tariffs on Chinese electric vehicles. China has responded with potential tariff reductions on European cars in a bid to ease tensions.
Major European automakers, including Volvo, are contemplating relocating their electric vehicle (EV) production facilities from China to neighboring countries like Indonesia, India, and even Europe. This strategic shift is primarily driven by the anticipation of tariffs imposed by the European Union on vehicles imported from China. Volvo’s decision to move the production of its Chinese-made EVs to Belgium underscores the potential impact of these tariffs and the broader challenges facing the global automotive industry.
