European Companies Brace for Impact Amid U.S. Election's Geopolitical Stakes
European companies may face negative repercussions from a Republican victory in the U.S. election, as Donald Trump plans to hike tariffs on Chinese products. This could escalate geopolitical tensions, affecting free trade. The Norwegian sovereign wealth fund emphasizes monitoring geopolitical events and reports a robust Q3 profit.
European companies that have deep business ties with China could face significant challenges if a Republican candidate emerges victorious in the upcoming U.S. election, an official from Norway's sovereign wealth fund cautioned. Donald Trump has signaled intentions to increase tariffs on Chinese goods, potentially heightening geopolitical strains.
Trond Grande, the deputy CEO of Norges Bank Investment Management, which manages the $1.8 trillion fund, stated that a Republican win might intensify existing tensions given the current political rhetoric surrounding tariffs and sanctions. The fund, which invests in 9,000 companies globally, favors free trade for better returns.
As stakes rise in global markets, the fund continues to monitor developments in the Middle East. Recent third-quarter data reflects a strong performance with a recorded profit of 835 billion crowns driven by falling interest rates, highlighting the fund's resilience amid global uncertainties.
(With inputs from agencies.)
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