Ericsson (ERIC) Loses 4% on US-EU Tariff Uncertainty

Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) is one of the 10 Stocks That Investors Are Dumping.

Ericsson dropped for a second day on Wednesday, losing 4.04 percent to close at $8.19 apiece as investors remained cautious about tariff uncertainties between the US and the European Union.

Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), a Swedish company, repeatedly cautioned this year that any US tariffs on European imports could affect its profit margins by around one percentage point.

“With the current tariffs coming, now we see approximately one percentage point impact on the margin for Q2,” Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) CFO Lars Sandstrom was quoted as saying in an interview with Reuters.

Ericsson (ERIC) Loses 4% on US-EU Tariff Uncertainty

An aerial view of a large telecommunications network covering a city skyline.

In recent news, the EU said it remained hopeful that it would be able to strike a trade deal with the US in the coming days that would avoid the import taxes on its goods.

Tariffs were supposed to take effect on July 9 for goods entering the US, but President Donald Trump announced an extension for talks until August 1.

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Disclosure: None. This article is originally published at Insider Monkey.