European equities edged lower on Monday following U.S. President Donald Trump’s warning of a 30% tariff on imports from the European Union, sparking fears of a prolonged and deeper economic slowdown.
Reports indicate that the EU has prepared a retaliatory tariff package worth €21 billion ($24.52 billion) aimed at U.S. products should trade negotiations fail.
The STOXX 600, a broad index covering European stocks, declined by 0.3%, following a 1% drop on Friday.
Germany’s DAX Index lost 0.8%, while France’s CAC 40 fell 0.4%. In contrast, the U.K.’s FTSE 100 defied the downward trend, climbing 0.4%.
Automobile manufacturers took a hit, with Volkswagen (TG:VOW3), BMW (TG:BMW), Mercedes-Benz (TG:MBG) and Porsche (BIT:1PORS) each dropping close to 2%.
On a brighter note, mining giant BHP (LSE:BHP) rose approximately 1% after signing preliminary agreements with Chinese battery makers CATL and BYD to explore opportunities in battery technology and electrification.
AstraZeneca (LSE:AZN) shares jumped 2% in London after positive late-stage trial results showed that its experimental drug baxdrostat effectively lowered high blood pressure.
French defense stocks were on the rise after President Emmanuel Macron called on Sunday for a substantial increase in France’s defense budget, citing escalating risks from Russia.
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