European shares start lower after Trump's fresh tariff threats
European shares opened lower on Monday, after rounding off monthly gains in May, as U.S. President Donald Trump's new tariff plans threatened to rekindle global trade tensions.
ADVERTISEMENT The continent-wide STOXX 600 was down 0.2% as of 0708 GMT.
Late on Friday, Trump said he planned to increase tariffs on imported steel and aluminum to 50% from 25%, to which the European Union said it was prepared to retaliate.
Steel companies in Europe fell, with ArcelorMittal down 1% and conglomerate Thyssenkrupp down 1.1%.
The tariffs, which can impact automobiles, weighed on stocks of carmakers, with the sector down 1.2%.
Meanwhile, Sanofi agreed to buy U.S.-based Blueprint Medicines Corporation, paying $129 per share, representing an equity value of approximately $9.1 billion. Shares in the French pharma group were slightly lower.
ADVERTISEMENT
This week, the spotlight will be on the European Central Bank, which will announce its interest rate decision on Thursday.
Comments from Federal Reserve Chair Jerome Powell and ECB President Christine Lagarde will be on tap, alongside a slew of economic data out of the trade bloc.
ADVERTISEMENT
(You can now subscribe to our ETMarkets WhatsApp channel)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
30 minutes ago
- India Today
Trump signs order imposing 50% tariffs for steel and aluminum, spares UK
In a bold escalation of his trade agenda, US President Donald Trump has signed an executive order doubling tariffs on imported steel and aluminium to 50 per cent, calling the move essential to protecting America's national security and industrial new tariffs, which go into effect just after midnight on Wednesday, also cover derivative products made from steel and aluminum. Trump's proclamation marks a sharp turn in trade policy, aimed at what he described as "excessively low-priced" imports that he says threaten the viability of US my judgment, the increased tariffs will more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States,' Trump said. The decision was made after Commerce Secretary Howard Lutnick provided updated information about the current state of the steel and aluminum sectors, which Trump said highlighted the urgency of stronger protective measures.'I doubled the rates after receiving new information about the sector from Commerce Secretary Howard Lutnick,' Trump most countries will now face the 50 per cent tariff, the United Kingdom will remain subject to the current 25% rate due to an existing framework trade deal. However, the proclamation warns that those rates could be adjusted as soon as July 9 if the British government is found to be non-compliant with the deal's higher tariffs will ensure that imported steel and aluminum will not threaten to impair the national security,' Trump Trump first introduced tariffs on steel in 2018, prices for steel products have climbed nearly 16 per cent, based on government data. Upon returning to office in January, Trump reinstated these trade measures, including new tariffs on aluminum. In March, a 25 per cent tariff on most imported steel and aluminium was implemented. He also considered a 50 per cent tariff on Canadian steel but eventually decided against InMust Watch
Hindustan Times
an hour ago
- Hindustan Times
India, UK sign trade deal with scope for renegotiation
The free trade agreement between India and the UK, concluded on May 6, incorporates a mechanism that would allow either party to renegotiate specific clauses if the other offers better terms to a third country through separate bilateral agreements, according to people familiar with the matter. The provision, now undergoing legal review, reflects UK's concern about missing future opportunities as India rapidly expands its trade relationships with major economies, including ongoing negotiations with the US and the European Union. 'The mechanism is mainly proposed by the British side as almost all major developed economies are holding FTA talks with India, which is rapidly growing to become the third largest by 2028. The UK does not want to miss out on any major opportunities even in future,' said one of these people, who asked not to be named. Although the agreement was concluded on May 6, it will require almost a year of clause-by-clause legal scrutiny and necessary approvals from competent authorities in both countries before it can be implemented, the official added. In a recently published policy paper on the India-UK FTA, the British government highlighted this renegotiation feature. The paper described the 'ambitious' deal as laying 'a stronger and mutually beneficial' relationship between the two countries, noting: 'We have sought to secure a deal that will keep pace with India as it grows. Alongside India committing to more than double their tariff reductions over the next 10 years, we have also secured numerous mechanisms that ensure that if India were to offer better terms to a different country, we could return to the table.' The timing is significant as India simultaneously pursues trade agreements with multiple partners. The country is currently in intensive negotiations with the US for a Bilateral Trade Agreement, with an early tranche of it expected this month. The India-UK agreement includes several key provisions designed to protect both countries' domestic interests while facilitating trade. General provisions and exceptions would allow both parties to take measures that might not otherwise conform with the agreement's commitments in order to serve legitimate public policy objectives. 'The trade agreement will also ensure the two countries would protect their respective domestic interests and respond appropriately to international developments in future. In other words, the two partners will be free to undertake justifiable measures to protect their respective security interests,' a second person familiar with the negotiations said. According to the UK policy paper, these flexibilities will 'protect domestic policy space and preserve the UK and India's rights to regulate in the public interest.' The agreement establishes an institutional framework including a joint committee with defined powers and functions to oversee the pact, ensuring it can drive economic growth in both countries. A subcommittee on sustainability will also be created. Trade facilitation features prominently in the deal, with both partners agreeing to release goods as rapidly as possible after arrival at customs. 'The idea is to do so within two days provided all necessary requirements are met in such cases where no physical examination would be necessary,' the second person said. According to an analysis by consultancy firm EY dated May 7, the deal will significantly benefit both economies. British exports will see 90% of UK tariff lines facing reduced tariffs, benefiting products including whisky, gin, automotive goods, medical devices, cosmetics, aerospace components, lamb, salmon, electrical machinery, soft drinks, chocolate, and biscuits. Whisky and gin tariffs will decrease from 150% to 75% initially, dropping to 40% over a decade. Automotive tariffs will fall from over 100% to 10% under a tariff rate quota system. For India, 99% of Indian tariff lines covering nearly 100% of trade value will benefit from zero duty, opening export opportunities for textiles, marine products, leather, footwear, sports goods, toys, gems, jewellery, engineering goods, auto parts, engines, and organic chemicals. The FTA is projected to increase UK GDP by £3.3 billion by 2035 and support significant employment gains in India, particularly in labour-intensive sectors like textiles, leather, and footwear. Bilateral trade, valued at $60 billion in 2024, is projected to double to $100 billion by 2030, according to the EY report.
Mint
2 hours ago
- Mint
Elon Musk explodes on Donald Trump's spending bill, says ‘shame on those who voted for it'
Billionaire Elon Musk took to X, formerly Twitter, to unleash a scathing criticism of President Donald Trump's new spending and tax bill. 'I'm sorry, but I just can't stand it anymore. This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong. You know it,' Musk posted. His remarks came days after stepping down from a short-lived post in Trump's administration leading a federal spending reform initiative under the Department of Government Efficiency (DOGE). Tesla has seen a drop in EV sales, a blow attributed to Musk's association with Trump's controversial policies. House Speaker Mike Johnson hit back at Musk's criticism, calling it 'very disappointing.' 'With all due respect, my friend Elon is terribly wrong about the one big beautiful bill,' said Johnson, who claimed to have spoken with Musk for more than 20 minutes. Press Secretary Karoline Leavitt downplayed Musk's remarks, indicating they would not sway the administration's direction. 'The President already knows where Elon Musk stood on this bill. It doesn't change the president's opinion. This is one big, beautiful bill and he's sticking to it,' she said. Elon Musk just days earlier voiced criticism of Trump's tax and spending bill, warning it could worsen the federal deficit and derail cost-cutting efforts by the Department of Government Efficiency (DOGE), which he briefly led. 'I think a bill can be big or it could be beautiful. But I don't know if it could be both,' Musk said in an interview with CBS. 'It increases the budget deficit and undermines the work that the DOGE team is doing.' The bill narrowly passed the House last week and is now headed for a tough vote in the Senate. Trump is urging swift Senate action to get the legislation on his desk by Independence Day. 'Passing THE ONE, BIG, BEAUTIFUL BILL is a Historic Opportunity to turn our Country around,' Trump posted. He added: 'Work as fast as they can to get this Bill to MY DESK before the Fourth of JULY.' He has been holding closed-door meetings with Senate GOP leaders and making personal calls to individual senators to push the bill forward. The House-passed bill is projected to reduce federal revenue by $4 trillion over 10 years and increase the deficit by $2.5 trillion. It extends 2017 tax cuts and adds new ones — including eliminating taxes on tips — while slashing safety-net programs like Medicaid and food stamps. Phases out Biden-era tax breaks for electric vehicles and green energy Allocates $350 billion for border security and deportations Raises the debt ceiling by $4 trillion Imposes work requirements for safety-net recipients An estimated 8.6 million could lose health coverage, and nearly 4 million may lose food assistance. Senate Majority Leader Chuck Schumer called the proposal 'ugly to its very core,' aligning with Musk's criticism. 'Behind the smoke and mirrors lies a cruel and draconian truth: tax breaks for the ultra-wealthy paid for by gutting health care for millions of Americans," Schumer said. Senator Rand Paul has emerged as a key GOP holdout, objecting to the $4 trillion debt ceiling hike included in the bill. 'Rand votes NO on everything, but never has any practical or constructive ideas. His ideas are actually crazy (losers!),' Trump posted on Truth Social. Paul responded: 'I like the president, supported the president. But I can't in good conscience give up every principle that I stand for and every principle that I was elected upon.' Treasury Secretary Scott Bessent has warned that without a debt ceiling increase by mid-July or early August, the US will run out of money to pay its obligations. Lawmakers are debating possible tweaks to the House version, including: Revising the proposed $40,000 SALT cap Reconsidering the $35 Medicaid copay Reinstating provider taxes crucial for rural hospitals The Senate is expected to vote narrowly, mirroring the one-vote margin in the House. With a July 4th deadline looming, Trump's 'big, beautiful bill' faces fierce resistance—from Democrats, policy experts, and even one-time allies like Elon Musk.
