With global investors nervously eyeing the trade rhetoric between the U.S. and Europe, a selection of analysts have given their tips on how to position for any upcoming import taxes.
Kokou Agbo-Bloua, the global head of flow strategy and solutions at Societe Generale, told CNBC Tuesday that there could be short-term trading opportunities in the mining sector, if investors get their timing right.
"We could buy volatility or production on the metals and mining sectors. They have been the ones underperforming quite materially yesterday (Monday), for example, but the problem is that volatility is probably the best outcome," Agbo-Bloua said.
Volatility refers to how risky a specific stock is over a certain period of time. Given that the potential tariffs haven't yet materialized and, in the meantime, there has been some opposition within the Republican Party to such trade announcements, stocks of miners and steel producers could prove profitable to traders if they buy and sell at the right times.
Last week, President Donald Trump said that the U.S. would impose a 25 percent tariff on steel imports and 10 percent on imported aluminum. Trade partners, namely the European Union, Brazil and Turkey, have promised to retaliate if such tariffs are put forward, raising fears of a potential trade war. "Ultimately I think that's bad for everyone," Kokou Agbo-Bloua said.