European equities dipped on Tuesday as investors weighed the potential effects on global growth from newly imposed U.S. tariffs and the looming risk of a federal government shutdown.
At 07:02 GMT, Germany’s DAX fell 0.2%, France’s CAC 40 also declined 0.2%, while the U.K.’s FTSE 100 inched up 0.1%.
New U.S. Tariffs
On Monday evening, U.S. President Donald Trump announced tariffs on imports of lumber, furniture, and kitchen fittings, effective October 14, according to the official proclamation. The measures include a 10% duty on softwood lumber and timber, a 25% levy on kitchen cabinets and vanities, and a 25% tariff on upholstered wooden products.
Last week, Trump also introduced a 100% tariff on pharmaceutical imports, part of his broader plan to encourage domestic production and reduce reliance on foreign goods.
Economic data from Asia highlighted the ripple effects of trade uncertainty. China’s manufacturing activity contracted for a sixth consecutive month in September, while Japanese factory output dropped more than expected in August.
In Europe, German import prices fell 1.5% year-on-year in August. Meanwhile, the U.K. economy grew 0.3% in Q2 2025, in line with preliminary estimates but down from 0.7% in the previous quarter, according to the Office for National Statistics.
U.S. Government Shutdown Risks
Attention remains on Washington as a potential government shutdown nears. Monday’s White House meeting between Trump and top congressional leaders failed to yield an agreement.
A shutdown could delay the release of critical nonfarm payrolls data for September, scheduled for Friday, which is closely watched for indications on future Federal Reserve policy moves. Today’s JOLTS report is also under scrutiny as investors seek clues on the likelihood of further rate cuts this year.
Corporate Moves
Danish jewellery maker Pandora (USOTC:PANDY) announced that CEO Alexander Lacik will retire in March 2026, with Chief Marketing Officer Berta de Pablos-Barbier set to take over.
Scottish soft drinks company A.G. Barr (LSE:BAG) reported a first-half adjusted pre-tax profit increase of just over 20%, boosted by margin improvements and strong demand for its Boost brand.
Oil Markets
Crude prices slipped on Tuesday, heading toward monthly losses amid reports that major producers are planning to boost output in November, raising concerns over excess supply.
By 03:02 ET, Brent futures fell 0.5% to $66.76 a barrel, while U.S. WTI futures dropped 0.4% to $63.20 a barrel. Both benchmarks had already fallen more than 3% on Monday and remain on track for monthly declines exceeding 1%.
OPEC+—the Organization of the Petroleum Exporting Countries and allies including Russia—is reportedly considering an additional production increase of at least 137,000 barrels per day in November. The group will meet virtually on October 5 to discuss the plan, following a similar production rise already scheduled for October as the alliance transitions from deep cuts to measured growth to defend market share.
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