European markets pare losses after Mexico says U.S. tariffs will be paused
European markets traded lower on Monday after U.S. President Donald Trump imposed trade tariffs on several countries and threatened to do the same with the European Union and U.K.
The pan-European Stoxx 600 was down 0.98% at 4 p.m. London time, recovering from lows of 1.6% earlier in the day.
The Stoxx 600 autos index also pared declines and was last down 2.4%, after Mexico’s President Claudia Sheinbaum said that the U.S. has agreed to delay the implementation of President Donald Trump’s tariffs for one month.
Shares of French car parts supplier Valeo and automaker Renault fell 8.6% and 1.4%, respectively, during early morning deals. Meanwhile, Germany’s BMW was 4% lower, Volkswagen was down 6.8% and Porsche was seen trading down by around 5%.
Europe’s tech, industrials and banking indexes each shed more than 2%.
Markets in the region were reacting negatively to President Trump’s decision at the weekend to slap 25% tariffs on imports from Mexico and Canada and a 10% levy on goods from China. Canada has retaliated with its own sanctions on U.S. imports and Mexico has threatened to do the same.
Source: CNBC
