European Stocks Tumble on New Tariffs
European stocks tumbled on Monday, with the STOXX 50 falling 1.3% and the STOXX 600 down 1.1%, after US President Trump announced over the weekend the introduction of a 10% tariff on goods exported to the US from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland, effective February 1.
The measure comes amid opposition from several European countries to US efforts to acquire Greenland. The tariff is set to rise to 25% on June 1 should no agreement be reached allowing the US to “purchase” the territory. In response, the EU is in discussions over the potential imposition of tariffs on up to €93 billion worth of US goods. Luxury stocks were among the hardest hit, with LVMH sliding 3.7%, Richemont down 4.1% and Kering losing 3.2%. The technology sector also posted sharp losses, led by ASML Holding (-2.0%), Infineon Technologies (-2.5%) and Siemens (-3.1%). Auto shares sank including VW (-2.9%) and Mercedes-Benz (-3.2%) while defense stocks continued to rise.
Source: Tradingeconomics.com
