PepsiCo (PEP) faces increased risk to its international margins after President Trump announced new 10% tariffs on eight European nations, escalating global trade tensions.

  • The new duties directly threaten PEP's profitability, as the company previously noted that supply chain costs, primarily from tariffs, trimmed approximately three points from its EPS in Q3 2025.
  • This geopolitical turmoil is driving U.S. futures sharply lower ahead of the market open.