European Stocks Weaken, Markets Weigh Impact of US Global Tariffs
European stocks weakened on Tuesday (February 24th), as investors reassessed the direction of global trade policy after US President Donald Trump announced the latest tariff measures. Shortly after opening, the Stoxx 600 index fell around 0.3%, with all major bourses in the region trading in the red.
Market pressures arose following the global reaction to Trump's decision to impose a 15% global tariff on imports to the United States. Risk sentiment weakened as market participants assessed the potential for this policy to alter trade costs, corporate margins, and growth prospects—especially for export-dependent economies.
From Europe, the response of regional officials expressed concern that the tariff policy could threaten the stability of the trade agreement with the US. In a cautious signal, the European Parliament on Monday announced a temporary halt to the ratification process for the US-EU trade deal agreed last summer, pending clarity on Washington's policy direction.
The impact of the tariff policy was also felt in the US market. Wall Street weakened on Monday, not only due to adjustments to new trade policies, but also due to ongoing concerns about AI disruption, which is seen as altering the outlook for several sectors and triggering portfolio rotations into more defensive assets.
Trump reiterated that he has room to raise tariffs further, including warning of higher duties for countries deemed to be "playing around" with existing agreements. He also stated that there would be additional tariffs in the coming months, while the timing of the 15% tariff remains unclear to the market—a condition that has kept volatility high in risk assets.
Source: Newsmaker.id
