European markets slide as Trump threatens EU tariffs

Published 27-02-2025, 01:48 pm
© Reuters

Investing.com - European markets traded lower on Thursday after U.S. President Donald Trump vowed to impose 25% tariffs on imports from the European Union.

At 09:06 ET (14:06 GMT), the pan-European Stoxx 600 had dipped by 0.6%, while Germany’s DAX was down 1.1% and France’s CAC 40 slipped 0.7%. The U.K.’s FTSE 100 inched up by 0.1%.

On Wednesday, Trump floated that he could soon enact a 25% "reciprocal" tariff on cars and other goods coming from the European Union. A spokesperson for the European Commission said the EU will respond "firmly and immediately against unjustified barriers to free and fair trade," Reuters reported.

Trump also appeared to indicate that postponed 25% import tariffs on Canada and Mexico could be delayed by roughly another month, saying the levies would come into effect on April 2.

"I have to tell you that, you know, on April 2, I was going to do it on April 1," Trump said. "But I’m a little bit superstitious, I made it April 2, the tariffs go on. Not all of them but a lot of them."

However, a White House official later said that Trump’s prior deadline of March 4 was still in effect "as of this moment," with a review of actions taken by Canada and Mexico to boost border security pending.

Amid the trade tensions, investors are also watching key economic data releases, including Spain’s inflation rate, Italy’s business and consumer confidence figures, and eurozone economic sentiment indicators, which could provide further insights into the region’s economic health.

Rolls-Royce surges past expectations with strong earnings

Rolls-Royce Holdings (LON:RR) raised its medium-term targets, as a drive to improve its engines and slash costs buoyed its results above market expectations.

The company is now projecting 2025 operating profit and free cash flow above market consensus, putting it on track to achieve key financial targets ahead of schedule, according to Morgan Stanley (NYSE:MS) analysts. Shares in Rolls-Royce 

Meanwhile, Italian energy giant Eni SpA’s (BIT:ENI) fourth-quarter earnings missed market expectations, with adjusted earnings before interest and taxes at 1.69 billion euros and net income at 892 million euros, both below consensus estimates.

Crude oil prices recover after Trump reverses Chevron’s Venezuela license

Oil prices edged higher on Thursday, bouncing back after two consecutive sessions of declines. The rebound came after Trump announced a reversal of the license previously granted to Chevron (NYSE:CVX) to operate in Venezuela, reigniting supply concerns.

(Scott Kanowsky contributed reporting.)

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