European markets flat despite Trump’s new tariff threats

European stock markets are broadly unchanged, including Milan’s Piazza Affari, showing little reaction to U.S. President Donald Trump’s newly announced import tariffs targeting 14 mostly Asian countries. The duties, set to take effect from August 1 unless deals are reached, were detailed in letters posted by Trump on social media, sent to leaders in countries such as Japan, South Korea, Malaysia, and South Africa.

“Trump is using tariff threats as bargaining leverage—a tactic markets have seen before and now largely ignore,” said Simon Wiersma, Investment Manager at ING. So far, Trump’s administration has signed only two tentative trade deals, with the UK and Vietnam, and a weak truce with China.

Markets are instead focused on the potential for a U.S.–EU framework deal. According to Politico, the U.S. proposal includes a 10% base tariff with exemptions for sensitive goods like aircraft and alcohol.

On the macro front, Germany posted a larger-than-expected trade surplus of €18.4 billion in May, while France’s trade deficit narrowed to €7.8 billion—slightly worse than forecast.

The EUR/USD pair is up 0.40%, gold remains steady at $3,333.6/oz, and crude oil (WTI) is marginally down 0.36%.

The spread between Italian and German 10-year bonds fell to +84 bps, with the Italian 10-year yield at 3.45%.

European markets remain largely flat: Frankfurt +0.09%, London +0.05%, and Paris unchanged.

In Milan, the FTSE MIB is steady at 39,922. The FTSE Italia Mid Cap rises 0.21%, and the FTSE Italia Star adds 0.25%.

Among blue chips, Campari (+2.54%), Nexi (+1.10%), and Saipem (+0.95%) posted gains. On the downside: DiaSorin (-1.08%), Brunello Cucinelli (-1.02%), and Inwit (-0.87%).

Top mid-cap performers include The Italian Sea Group (+1.72%) and Mondadori (+1.41%), while Alerion Clean Power (-1.60%) and ERG (-0.81%) lead losses.