IT'S NOT TOO LATE FOR EUROPE

A new trade deal removes some uncertainty for investors.

- DAVID MILSTEAD

EUROPEAN stocks have been hot in 2025, with the FTSE Developed Europe index up nearly 21% for the year so far (through July), compared with 8.6% for the S&P 500. The new trade deal with the continent, on the heels of a similar one with Japan, imposes new tariffs on the region-but also removes some economic uncertainty. The deal sets tariffs on most eurozone products at 15% and eliminates EU tariffs on many U.S. products. It could have been worse for Europe. According to economic research from Goldman Sachs, "specific exemptions and a lower auto tariff might offset much of the higher baseline tariff rate." After the