Customs duties could have a disproportionate positive impact on small capitalizations, which tend to be more focused on the internal market.
The small capitalizations of the euro zone outperformed the global stocks of 10% in the first quarter of 2025, with outperformance since the beginning of the year close to April 16 to April 23, 2025. We continue to observe a capital exit from the United States to other regions which have underperformed the United States in the past decade, in particular Europe.
If these customs duties remain in force, we believe that European companies could benefit from them due to a potentially increased demand for their products and services if American commercial partnerships are assigned. In addition, customs duties may have a disproportionate positive impact on small capitalizations, which tend to be more focused on the internal market, while large capitalizations could be harder due to their greater geographic footprint in terms of income.
