After a call with EU Commission President von der Leyen, Trump agreed Sunday to delay the 50% tariffs on EU goods announced just a few days ago until July 9, reinstating the original negotiation window. He called it a “very nice call”—but the stakes remain high.
‍

Markets rallied on the news: European stocks rebounded, the euro hit a monthly high, and autos, banks, and luxury names led the bounce. Still, the underlying conflict is unresolved.
‍

The EU seeks a broad, reciprocal deal. Trump wants unilateral concessions, especially in high-tech manufacturing, using tariffs to force reshoring. The U.S.–EU trade deficit has doubled, fueled by front-loaded imports ahead of deadlines, and Trump’s broader frustration includes EU lawsuits targeting U.S. tech and AI firms.

‍

‍

Sweden Signals Shift as Europe Regains Momentum

‍

In a sign of discomfort with U.S. policy, Swedish retail investors are moving out of U.S. stocks and into domestic and European names. Long seen as early movers, Swedish investors may be front-running a broader reallocation. European equities are up 24% YTD.

‍

Why Europe Could Keep Running

‍

• Fund flows into EU equities are rising, still well below 2021 highs.
• Valuations remain attractive vs. U.S. tech-heavy benchmarks.
• The ECB has more easing room, and German fiscal support adds cushion.

Sweden’s pivot could be the leading indicator of a broader trend. With U.S. risks mounting, the relative case for Europe is gaining steam.
‍

*The chart below shows a sharp surge in 1-month flows into European equities in early 2025—led primarily by ETFs—marking the strongest inflows since 2021 and signaling renewed investor interest in the region.*

‍

‍