European markets are expected to open sharply lower Monday after U.S. President Donald Trump imposed trade tariffs on several countries and threatened to do the same with the European Union and U.K.
The U.K.’s FTSE 100 index is expected to open 116 points lower at 8,563, Germany’s DAX down 498 points at 21,217, France’s CACÂ down 166 points at 7,772 and Italy’s FTSE MIB down 901 points at 35,708, according to data from IG.
European markets are set to react negatively to President Trump’s decision at the weekend to slap 25% tariffs on imports from Mexico and Canada and a 10% levy on goods from China. The tariffs are set to come into effect Tuesday. The U.S. does about $1.6 trillion in business with the three countries.
Canada has retaliated with its own sanctions on U.S. imports and Mexico has threatened to do the same.
When asked on Sunday about the prospect of tariffs on goods from the U.K. and European Union, Trump told the BBC that both were “out of line” but that the EU was worse. He said a deal could be “worked out” with the U.K., a country with whom the U.S. has a more balanced trade relationship.
Trump described the U.S. trade deficit with the EU as an “atrocity,” repeating his previous comments that the bloc had “really taken advantage” of the United States. Officials from the EU signaled previously that the bloc could respond to any future U.S. tariffs “in a proportionate way.”
Asia-Pacific markets traded lower overnight after Trump’s tariff move, while U.S. stock futures tumbled Sunday night as investors weighed new U.S. tariffs and their potential impact on the economy and corporate profits.
Earnings in Europe come from Julius Baer on Monday, while data releases include the latest euro zone inflation data.
Bitcoin falls, gold rises in risk-off move after U.S. tariffs
Traders appeared to search for safety in early Sunday night trading after the U.S. hit key trade partners with hefty tariffs on goods.
Bitcoin dipped back below $100,000, losing 3.6% to trade at $97,554.24. Gold, a traditional safe-haven asset, ticked 0.3% higher to $2,842.60 per ounce.
Bitcoin falls, gold rises
— Fred Imbert
Canada, Mexico, China and Europe respond to Trump tariffs
The U.S. on Saturday imposed levies on imports from Canada, Mexico and China. Here’s how those countries, and the European Union, reacted:
- Canada: Prime Minister Justin Trudeau slapped retaliatory tariffs of 25% on $155 billion worth of U.S. goods. “Like the American tariffs, our response will also be far-reaching and include everyday items such as American beer, wine and bourbon, fruits and fruit juices, including orange juice, along with vegetables, perfume, clothing and shoes,” Prime Minister Justin Trudeau said.
- Mexico: President Claudia Sheinbaum slammed the new levies, saying she instructed the country’s secretary of the economy to “implement the Plan B we have been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests.”
- China: The country said it would file a lawsuit with the World Trade Organization. “The U.S.’s unilateral tariff hike seriously violates WTO rules, does nothing to resolve its own issues, and disrupts normal economic and trade cooperation between China and the U.S.,” the Chinese Ministry of Commerce said in a statement Sunday, according to an NBC translation.
- The European Union: A spokesperson for the EU said the bloc would “respond firmly” if President Donald Trump imposed tariffs on the region. “Across-the-board tariff measures raise business costs, harm workers and consumers. Tariffs create unnecessary economic disruption and drive inflation. They are hurtful to all sides,” the spokesperson said.
— Katrina Bishop
Oil prices pop after U.S. hits Mexico, Canada and China with tariffs
WTI jumps
— Fred Imbert
U.S. dollar edges 1% higher after Trump tariffs
The U.S. dollar advanced nearly 1% on Sunday night, continuing gains since President Donald Trump implemented tariffs over the weekend. The currency is trading near five-year highs.
— Pia Singh
European markets: Here are the opening calls
European markets are expected to open sharply lower Monday after U.S. President Donald Trump imposed trade tariffs on several countries and threatened to do the same with the European Union and U.K.
The U.K.’s FTSE 100 index is expected to open 116 points lower at 8,563, Germany’s DAX down 498 points at 21,217, France’s CACÂ down 166 points at 7,772 and Italy’s FTSE MIB down 901 points at 35,708, according to data from IG.
Earnings come from Julius Baer on Monday, while data releases include the latest euro zone inflation data.
— Holly Ellyatt