ASML Holding's Stock Plummets to 52-Week Low Amid Trump's EU Tariffs Impact

ASML Stock Hits 52-Week Low as Trump's EU Tariffs and China Sanctions Weigh on Outlook

ASML Holding N.V. (ASML) shares plummeted to a 52-week low on Friday, as the company's outlook was weighed down by the ongoing trade tensions between the United States and its major trading partners.

The Netherlands-based semiconductor equipment supplier saw its stock price drop by as much as 7.4% to $124.99 per share, its lowest level since May 2018, according to Yahoo Finance.

The decline came as President Donald Trump's administration imposed tariffs on European Union goods, sparking fears of a global trade war. The tariffs, which were implemented on Friday, are expected to hit European goods worth around $7.5 billion, including aircraft, whiskey, and machinery.

Meanwhile, tensions between the US and China continued to simmer, with Beijing imposing sanctions on several US companies, including Boeing Co. (BA) and Caterpillar Inc. (CAT). The sanctions, which were announced on Friday, are seen as a retaliatory measure against the Trump administration's latest tariffs on Chinese goods.

ASML, which relies heavily on exports to China, is particularly vulnerable to the escalating trade tensions. The company's CEO, Peter Wennink, has previously warned that the ongoing trade war could have a significant impact on the company's business.

In its latest quarterly earnings report, ASML warned that the trade tensions could lead to a decline in demand for its products, which are used to manufacture semiconductors. The company's revenue and profit margins have already been affected by the trade tensions, and analysts are worried that the situation could worsen in the coming quarters.

"We believe the trade tensions will continue to weigh on ASML's outlook, and we expect the company's revenue and profit margins to remain under pressure in the coming quarters," said an analyst at Bernstein Research.

ASML's decline on Friday was led by a 9.2% drop in its American Depositary Shares (ADS), which fell to $125.99 per share. The company's European-listed shares also fell by 6.5% to €108.50 per share.