Oil and European Stocks Fall as Tariffs Take Effect – Europe Market Wrap
Stocks in Europe fell on concerns that the area may be next to face US tariffs after Trump levied charges on Mexico, Canada, and China. Oil prices decreased.
Europe’s Stoxx 600 index fell 1.2%, pulled down by automakers and energy sectors, after ending at a high the previous day. S&P 500 futures indicated a flat open.
The additional charges are Trump’s most ambitious attempt to reshape global trade, and investors will be looking for clues about future measures in his address to Congress on Tuesday. In response, Canada issued a wide tariff package, and China countered by placing tariffs of up to 15% on some US products.
Trump also ordered suspension on all military funding to Ukraine, ratcheting up the pressure on Zelenskiy only days after an Oval Office spat with the Ukrainian president cast doubt on his country’s most important partner.
As Trump pulls back, the EU proposes a €150 billion defence loan plan. Oil prices fell further on concerns about global trade tensions and OPEC+’s plans to restart stalled output. Brent crude dropped to around $70 per barrel.
