Barclays: U.S. tariffs on the European Union will once again test the resilience of the U.S. stock market.

Jin10 Data reported on July 14 that Barclays analysts stated in a research report that the U.S. threatens to impose a 30% tariff on the EU, which will once again test the resilience of the U.S. stock market. The analysts said that if the EU retaliates and the economy falls into a deeper recession, the stock market could see a double-digit fall. If a full-scale trade war breaks out, it could lead to a repeat of the big dump market after 'Liberation Day'—when cyclical and financial stocks performed the worst, and the lack of liquidity in the summer market could exacerbate the situation, they wrote. The analysts remain skeptical about tariffs staying at such high levels. They indicated that Trump's tolerance for pressure on the stock and bond markets (and thus damage to the U.S. economy) seems limited. They added that this might restrict the level of tariffs he ultimately imposes on major trading partners of the U.S.