European Stocks Dip as Trump Tariffs Hit Drinks Firms
European stocks dipped in volatile trading, with beverage makers sliding after US President Donald Trump threatened to put a 200% tariff on alcoholic beverages from the European Union, signaling an escalation in the transatlantic trade war.
The Stoxx Europe 600 Index fell 0.2% at the close in London, after gaining as much as 0.6% earlier. LVMH, which sells Moet & Chandon champagne and other products, slipped 1%, while shares in spirits maker Pernod Ricard SA, cognac producer Remy Cointreau SA and Davide Campari declined as much as 4%%.
Trump said in a social media post that he would move forward with the import duties if Brussels follows through with a tax on American whiskey exports, a measure aimed at retaliating against Trump’s steel and aluminum tariffs that took effect on Wednesday.
Telecoms and health-care shares outperformed, with Novo Nordisk A/S rising after Kepler Cheuvreux upgraded the drugmaker. Defense shares rose after Jefferies analysts started coverage on a slew of stocks.
Autos, meanwhile, underperformed as truckmakers tumbled on concern that a rollback of US environmental regulations could reduce demand for new models.
Source : Bloomberg
