Revealed on
Traders in Europe reeled from US President Donald Trump’s tariff threats on Monday morning, sending the key indexes into adverse territory.
As of round 9.30am CEST, France’s CAC 40 was down 0.52% at 7,788.23, the UK’s FTSE 100 slipped 0.38% to eight,941.12, and Germany’s DAX dropped 0.85% to 24,049.73.
Spain’s IBEX 35 fell 0.80% to 13,897.80, whereas Italy’s FTSE MIB dropped 0.86% to 39,726.27.
The STOXX 600 slid 0.48% to 544.73 and the STOXX 50 fell 0.83% to five,338.57.
The actions come as EU commerce ministers are assembly on Monday morning to debate President Trump’s shock announcement of 30% tariffs on the European Union. Trump shared the plans on Saturday and stated that the identical charge, set to kick in on 1 August, could be utilized to items from Mexico.
European officers have been working to safe a take care of the US after the president threatened a 50% tariff on EU exports in Could, up from an initially proposed 20% charge. President Trump then retracted the specter of a 50% obligation, though retained separate tariffs on exports like metal, aluminium, and automobiles.
In response to Trump’s announcement over the weekend, the president of the European Fee Ursula von der Leyen stated the EU wouldn’t impose retaliatory tariffs on US imports earlier than 1 August, permitting time for negotiation.
Denmark’s overseas minister, Lars Løkke Rasmussen, additionally informed reporters forward of the assembly on Monday: “We shouldn’t impose countermeasures at this stage, however we should always put together to be prepared to make use of all of the instruments within the toolbox.”
He added: “So we would like a deal, however there’s an previous saying: ‘If you need peace, it’s a must to put together for battle.'”
Maroš Šefčovič, the EU’s commerce consultant in its talks with the US, additionally stated on Monday that negotiations would proceed. “I’m completely 100% certain {that a} negotiated resolution is significantly better than the strain which we would have after 1 August.”
He informed reporters in Brussels: “I can’t think about strolling away with out real effort. Having stated that, the present uncertainty brought on by unjustified tariffs can’t persist indefinitely and due to this fact we should put together for all outcomes, together with, if vital, well-considered proportionate countermeasures.”
In mild of US isolationism, the EU can be seeking to broaden commerce with different companions. Leaders from the bloc will journey to China for a summit later this month, searching for to advertise stronger relations regardless of disagreements over the alleged “dumping” of low-cost Chinese language items in Europe. This accusation prompted the EU to impose its personal tariffs on Chinese language items final yr.
Whereas in China for the summit, EU leaders can even be courting different Pacific nations like South Korea, Japan, Vietnam, Singapore, the Philippines, and Indonesia, whose prime minister visited Brussels over the weekend to signal a brand new financial partnership with the EU.
The downbeat investor sentiment in Europe additionally comes regardless of pledges to extend defence spending. France’s president Emmanuel Macron on Sunday pledged to boost France’s navy spending by €6.5 billion over the subsequent two years. Macron stated the 2026 defence price range could be raised by €3.5bn, and one other €3bn in 2027.