Europe's banks battered as Trump tariffs put U.S. recession on the horizon
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 04 2025
0mins
Source: CNBC
Impact of U.S. Tariffs on European Banks: European banks are experiencing significant losses due to aggressive tariffs imposed by the U.S., with major institutions like Deutsche Bank and UBS seeing share price declines between 8% and 11%. Economists warn that these tariffs could lead to higher costs for American consumers and increase the risk of a recession.
Economic Consequences for Europe: The U.S. tariffs may negatively affect the European economy, potentially reducing GDP growth by 0.4-0.8 percentage points, as warned by Deutsche Bank. The EU is preparing countermeasures to protect its interests, while banks are shifting focus from traditional lending to fee-based services amid economic uncertainty.
Analyst Views on DB
Wall Street analysts forecast DB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DB is 41.98 USD with a low forecast of 35.44 USD and a high forecast of 46.63 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 39.140
Low
35.44
Averages
41.98
High
46.63
Current: 39.140
Low
35.44
Averages
41.98
High
46.63
About DB
Deutsche Bank Aktiengesellschaft is a bank and holding company for its subsidiaries. The Company offers a range of services such as investment, financial and related products and services to private individuals, corporate entities, and institutional clients. It operates through four business divisions: Corporate Bank, Investment Bank, Private Bank and Asset Management. The Corporate Bank division serves corporate clients and financial institutions, offering cash management, trade finance, lending, foreign exchange, trust and agency services, correspondent banking, and securities services. The Investment Bank division includes Fixed Income & Currencies (FIC) Sales & Trading, Origination & Advisory, and Deutsche Bank Research. The Private Bank division focuses on personal and private clients, wealthy individuals, entrepreneurs and families. The Asset Management division operates under the brand DWS, and it serves a diverse client base of retail and institutional investors worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
