Trump’s New Tariff Threats Against the EU and Mexico Lead to Decline in European Stock Markets

According to Jinse Finance, European stock markets fell on Monday, led by declines in auto stocks, as recent threats from U.S. President Trump to impose hefty tariffs on the EU and Mexico unsettled investors. The pan-European Stoxx 600 index dropped 0.6% at the open to 544.3 points. Except for the UK’s FTSE 100, which rose 0.2%, other regional indices declined. On Saturday, Trump threatened to impose a 30% tariff on goods imported from the EU and Mexico starting August 1. In response, the EU announced on Sunday that it would extend the suspension of its countermeasures against U.S. tariffs until early August and continue to push for a negotiated solution. On Monday, Italy’s foreign minister stated that if no agreement is reached, the EU has already prepared a list of U.S. goods worth 21 billion euros (24.5 billion dollars) for potential tariffs, further intensifying trade tensions. European auto stocks fell 1.4%, while retail stocks dropped 1%. (Jin10)