European Stocks Close Monday in Red After Trump's 15 Percent Tariffs
The pan-European Stoxx Europe 600 index slipped 0.45%, shedding 2.86 points to settle at 627.7, as investor sentiment soured across the continent.
Germany's DAX 40 bore the sharpest losses, falling 1.06% to 24,991.97, while France's CAC 40 dropped 0.22% to 8,497.17. The UK's FTSE 100 barely moved, edging down just 0.02% to close at 10,684.74. Southern European markets bucked the trend, with Italy's FTSE MIB advancing 0.49% to 46,699.29 and Spain's IBEX 35 gaining 0.56% to finish at 18,288.7.
The market turbulence was triggered after Trump announced over the weekend that he was lifting his existing blanket tariff from 10% to 15%, effective immediately, through a post on his Truth Social platform. He also issued a pointed warning that further levies were forthcoming.
"I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been 'ripping' the U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level," he wrote.
On Monday, Trump escalated his rhetoric further, threatening to impose even steeper tariffs on any nations that "play games" following a Supreme Court ruling.
Across the Atlantic, the European Parliament responded swiftly, announcing a halt to its ratification work on the EU-US trade agreement in the wake of the renewed tariff offensive. Bernd Lange, chair of the EP's trade committee, confirmed the move on social media platform X, stating that work on the agreement would be suspended until further notice.
The euro gained modest ground amid the uncertainty, with the euro/dollar exchange rate rising 0.1% to 1.1794 as of 1745 GMT.
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