European Shares Slide as Trump Eyes Next Round of Tariffs
European stocks tumbled as investors weighed the odds that the region will be next to suffer from US tariffs.
The Stoxx Europe 600 Index declined 1.5% by 8:07 a.m. in London, the most since Dec. 20, with the tariff-exposed automotive sector leading the drop.
The selloff came after US President Donald Trump imposed tariffs on Canada, Mexico and China, and promised to make similar moves against the European Union, in what looks likely to be first salvo in an escalation of trade restrictions.
Trump said he will “definitely” place new tariffs on the European Union, reiterating complaints about the US trade deficit with the bloc and what he sees as insufficient EU imports of American cars and agricultural products.
He told reporters last week that the US will be seeking “something very substantial” from the EU. Trump has so far not specified a level or time frame for the move, and the EU has said it will “respond firmly” if the US imposes tariffs.
“Markets had largely been expecting a slower implementation,” said Ulrich Urbahn, head of multi-asset strategy and research at Berenberg. Investors await “counter movements by Canada, China and Mexico now. One thing is sure, volatility is here to stay,” he said.
Source: Bloomberg
