Sign Up Log in

    Trump calls on the European Union to impose full tariffs on China and India to pressure Putin

    by VT Markets
    /
    Sep 9, 2025
    Trump Calls for 100% Tariffs from the EU We should get ready for possible market instability. It’s wise to buy call options on volatility indexes like the VIX and Europe’s VSTOXX, as the market isn’t fully reflecting this level of geopolitical risk. This situation reminds us of the 2018 tariff escalation when the VIX more than doubled in just two months. We need to protect our investments in Europe, especially in Germany, which relies heavily on exports. Buying put options on the German DAX index or on ETFs that track European car manufacturers is a smart move. In 2024, China was the EU’s second-largest trading partner with goods trade worth over €700 billion. With Germany’s economy already showing weakness last year, this could trigger a significant downturn. Strategies for Asian Markets We should also take similar protective measures for Asian markets. Buying protective puts on China’s A50 index and India’s Nifty 50 is necessary due to risks to their export sectors. India, with a projected growth rate of over 6% this year, is particularly susceptible to disruptions in trade with the EU. In currency trading, the best move is to buy the U.S. dollar against the euro, offshore Chinese yuan, and Indian rupee. We expect a shift towards safer investments, which will strengthen the dollar. Buying puts on currency futures for the euro or rupee is a straightforward way to prepare for their expected weakness in the coming weeks. We also need to consider the “mirror” tariff threat to U.S. companies. This makes broad short positions on the S&P 500 risky. Instead, we should focus on purchasing puts for specific U.S. tech and retail companies that rely heavily on Chinese supply chains. In 2024, over one-fifth of S&P 500 companies identified this reliance as a key operational risk. Create your live VT Markets account and start trading now.

    here to set up a live account on VT Markets now

    In This Article

    see more

    Back To Top
    server
    Click Click Click Click Click
    Follow us on

    Hello there 👋

    How can I help you?

    Chat with our team instantly

    Live Chat

    Start a live conversation through...

    • Telegram
      hold On hold
    • Coming Soon...

    Hello there 👋

    How can I help you?

    telegram

    Scan the QR code with your smartphone to start a chat with us, or click here.

    Don’t have the Telegram App or Desktop installed? Use Web Telegram instead.

    QR code