US trade opening boosts luxury and autos

(Il Sole 24 Ore Radiocor) - The clearing up of tariffs, on the European and Chinese fronts, is pushing two of the sectors most exposed to the issue, automotive and luxury . In particular, the four-wheelers are benefiting from the White House's openness to an extension of the July 9 deadline for imposing tariffs on Europe, after the Trump administration said that the deadline "is not crucial" and "could perhaps be postponed". Washington's counter-proposal to the EU has arrived in Brussels and the President of the Commission, Ursula von der Leyen, has taken the time necessary to study the papers without going into detail, clarifying that Europe is ready for an agreement , but is still preparing for the possibility that a satisfactory solution may not be reached. French President Emmanuel Macron has clarified that, if in the end the American proposal were to impose 10% tariffs, there should be compensation for American products on the EU market.

Luxury, on the other hand, benefits from the fact that the United States and China have signed a trade agreement , as President Donald Trump said, adding that he expects to reach an agreement with India soon, and confirmed by Commerce Secretary Howard Lutnick. Details are still missing and Beijing has not yet commented, but investors want to see the glass half full, especially since a US-China agreement could also accelerate exports of rare earths to the United States, crucial for production in the industry (semiconductors, automotive and aerospace in the lead). Thus, the Euro Stoxx 600 of the auto and components sector is among the best in the Old Continent. At Piazza Affari Stellantis is among the best of the Ftse Mib and Ferrari also benefits from the rise in the luxury sector, in Paris Renault rises and in Frankfurt BMW , Mercedes-Benz Group , Porsche Automobil Holding Pref and Volkswagen are in the spotlight.

On the luxury front, Brunello Cucinelli and Moncler are up in Milan, while Hermes, LVMH and Kering are up in Paris. "The luxury sector is a constantly expanding global industry, with a growth rate approximately double that of global gross domestic product. It is a cyclical sector, influenced by various factors such as the sense of well-being and wealth", explain the analysts at Generali Asset Management, underlining that "with regard to tariffs and the weakness of the dollar, these are two factors that have been negatively influencing the sector since the beginning of the year . We believe that companies with greater pricing power are able, in any context, to pass on any additional costs to consumers through price increases, thus managing to better preserve profit margins".