European Stocks Open Lower, Trump's New Tariffs Weigh Down Sentiment
European stock markets started the week in the red on Monday (February 23rd) as global markets responded to US President Donald Trump's latest tariff policy.
The pan-European Stoxx 600 index fell around 0.3% in early trading in London, with most sectors and major bourses also declining.
This decline came after European markets had rallied at the end of last week, fueled by a US Supreme Court ruling that rejected most of Trump's "reciprocal" tariffs. However, that optimism quickly faded when Trump announced over the weekend that he would implement a 15% global tariff as an "umbrella" tariff, up from 10%.
Trump stated that the new tariffs would take effect immediately and signaled the possibility of further additional duties. This statement renewed investor concerns about the risks of a trade war, potential retaliation from trading partners, and the impact on supply chains and economic growth.
With increasing uncertainty, markets tended to reduce exposure to risky assets and await clarity on policy details and the responses of other countries. Investors' focus is now on the direction of future trade negotiations and whether these new tariffs will impact the performance prospects of global companies sensitive to international trade.
Source: Newsmaker.id
