European equities moved slightly lower on Tuesday as investors evaluated shifting global trade conditions following the implementation of new worldwide tariffs introduced by U.S. President Donald Trump.
At 08:05 GMT, Germany’s DAX index declined 0.1%, France’s CAC 40 fell 0.2%, and the U.K.’s FTSE 100 slipped 0.2%.
New tariff environment adds uncertainty
The latest round of global trade tariffs announced by President Trump has taken effect at a 10% rate after a U.S. Supreme Court ruling invalidated a large portion of earlier levies, adding fresh uncertainty to international trade dynamics.
The 10% tariff level was communicated via the U.S. Customs and Border Protection messaging system. Media reports indicate the White House is now considering increasing the tariff to 15%, a level Trump signalled over the weekend following the court decision.
Investors are questioning whether trade agreements negotiated prior to the Supreme Court ruling remain valid. A European Union assessment suggested the revised tariff framework could push duties on certain EU exports beyond levels allowed under existing trade arrangements.
Trump is expected to address trade policy during his State of the Union speech to Congress later Tuesday, having already warned trading partners not to “play games” by withdrawing from recently negotiated agreements.
Earnings season continues across Europe
Corporate earnings remained a key focus for markets as companies continued reporting results during a busy week for financial updates.
Standard Chartered (LSE:STAN) announced a 16% increase in full-year pre-tax profit, supported by strong performances in its global banking and wealth divisions. The lender also unveiled a $1.5 billion share buyback programme and raised its full-year dividend by 65% compared with the previous year.
Telefonica (BIT:1TEF) reported a fourth-quarter net loss after recognising €2.8 billion in restructuring charges, which outweighed improvements in operating performance as the telecom group reshaped its portfolio and exited several Latin American markets.
Fresenius Medical Care (TG:FME) posted a sharp increase in fourth-quarter operating income, helped by accelerating cost-saving measures and favourable reimbursement trends.
Croda International (LSE:CRDA) also reported improved adjusted earnings for 2025, with growth driven by solid performance in its Consumer Care and Life Sciences divisions.
The European automotive sector drew attention as well after data from industry body ACEA showed regional new car sales declined year-on-year in January for the first time since June. Total EU registrations fell 3.9%, although battery-electric vehicles increased their market share to 19.3% from 14.9% a year earlier. Hybrid-electric vehicles remained the dominant powertrain at 38.6% of registrations, while petrol and diesel vehicles continued to lose market share.
Oil prices hover near seven-month highs
Oil prices edged higher on Tuesday, trading close to seven-month highs ahead of another round of nuclear negotiations between the United States and Iran later this week.
Brent crude futures rose 0.3% to $71.33 per barrel, while U.S. West Texas Intermediate crude gained 0.4% to $66.55 per barrel. Both benchmarks are currently trading near levels last seen in early August 2025.
Iran and the United States are scheduled to hold a third round of nuclear talks in Geneva on Thursday, amid growing concerns about the risk of military escalation as Washington pushes for an end to Iran’s nuclear programme.
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