European markets are set to open lower on Monday as investors react to U.S. President Donald Trump’s announcement of new global trade tariffs. The move, which raises blanket tariffs from 10% to 15%, has reignited concerns about inflation and global economic growth, sending a wave of uncertainty through financial markets at the start of the trading week.
According to IG data, the FTSE 100 is expected to open 0.2% lower, while Germany’s DAX could drop 0.7%. France’s CAC 40 is projected to fall 0.4%, and Italy’s FTSE MIB is seen declining by 0.45%. The cautious start follows last week’s gains, which were fueled by a U.S. Supreme Court ruling that struck down a significant portion of Trump’s earlier “reciprocal” tariffs.
Despite that court decision, Trump announced over the weekend that a new, broader 15% tariff would take effect immediately. In a post on Truth Social, the president defended the move as necessary to protect U.S. economic interests, warning that additional levies could follow. The swift policy shift has added fresh volatility to global markets that were just beginning to stabilize.
U.S. stock futures fell Sunday night as traders weighed the implications of higher import costs and potential retaliatory measures from trading partners. However, Asia-Pacific markets posted gains overnight, suggesting investors in the region are cautiously absorbing the news while monitoring further developments from Washington.
With no major corporate earnings scheduled for Monday, attention will turn to economic indicators in Europe, including Germany’s Ifo business climate survey and Italy’s latest inflation figures. Analysts say these reports could offer clues about how resilient Europe’s economy remains amid renewed trade tensions.
source: cnbc