European stocks extended losses after the latest U.S. tariff proposals, which have shocked new life into trade policy all around the world. President Donald Trump has pushed for increasing tariffs on Chinese imports. This unprecedented decision has sent shockwaves through the financial markets and prompted fears of a worldwide economic slowdown. Allies respond The European Union (EU) has temporarily suspended their scheduled retaliation against Trump’s tariffs for 90 days. This move further militarizes an already precarious global trade environment.
With the current U.S.-China tariff war injecting instability into the luxury sector, … Jobs in this once-booming sector has so far reaped on a recovery that is dead on arrival. Analysts fear that a prolonged US-China economic slowdown due to tariffs might hurt consumer demand in China. That change has the potential to greatly increase sales overseas. The U.S. Energy Information Administration (EIA) contributes to this confusion and uncertainty with its forecasts. It forecasts the demand for oil will plummet and envisions reduced prices for oil in this volatile market.
Peter Navarro, then Trump’s chief trade advisor, dismissed warnings about the risks of tariff volatility. He argues that these reforms will have little effect on the international financial architecture. He shrugged off those kinds of fears with a cavalier, “so what,” response when we pressed him on it in a … Continue reading →
The EIA’s updated forecasts are an acknowledgement of the strikingly backloaded and cautious outlook for the oil market. The agency has since lowered its forecasts accordingly, now expecting average Brent crude oil prices to be below $70 per barrel by 2025. Further, they predict prices will stay a little above $60 per barrel in 2026, a drop of 10% from their March estimates. Oil consumption growth is projected to continue slowing. In 2025, we expect big global growth to slow to just 0.9 million barrels per day, down from our previously forecast of 1.3 mbpd.
The impacts of these tariff policies are felt far beyond the energy industry. Simon MacAdam, a senior economist, noted that Trump’s tariffs could have effects comparable to those seen during the euro-zone crisis. He remarked, “This would be roughly equivalent to the global damage resulting from the euro-zone crisis.” He further emphasized the potential fallout of an escalated trade war, stating, “If the US and China were to effectively cut off trade in most if not all areas, the fallout in financial markets could conceivably take on a life of its own with large negative feedback loops on the global economy.”
In the meantime, analysts are seeing a marked decline in the recovery of the luxury market. Industry expert Carole Madjo, who at first agreed that the luxury sector would rebound by the second half of 2025, pointed out that growing macroeconomic headwinds will continue to be a risk to this hard-earned recovery. “With all these new macro uncertainties, this recovery will likely take a further stage,” she stated. Secondly, as Madjo mentioned, what has happened to expectations for growth in China’s luxury market. This year, they’re hoping for no more than a 5% drop off. “But we now, of course, see much more downside risk,” she added.
It’s clear that market sentiment is still being affected by long-term tariffs and erratic policy trajectories. As Paul Wong of UBS recently highlighted, such a combination increases the odds of stagflation. Consequently, demand for gold as a safe-haven asset is increasing. He stated, “Persistent tariffs and policy unpredictability continue to elevate the risk of stagflation.”
When European markets opened on Tuesday morning, the Stoxx 600 Oil and Gas Price Index immediately lost about 1.5% of its value. This drop-off is indicative of investor concerns surrounding the developing trade landscape. For example, stock prices at major oil companies such as Shell and TotalEnergies plummeted. Shell was down 0.6%, and TotalEnergies was off 1.6%.