EU Markets open in red amid escalating US-EU trade tensions

European markets opened lower today, reflecting heightened risk aversion after U.S. President Donald Trump threatened new tariffs on several EU countries. The pan-European Stoxx 600 fell around 0.8% before 8:30 a.m. in London, with broad losses across sectors. In addition, major national indices were weaker: France’s CAC 40 dropped about 1.3%, Germany’s DAX slid roughly 1.1%, and the U.K.’s FTSE 100 eased by about 0.3% in early trading

This market situation comes as an immediate reaction to Trump’s threat to impose 10% tariffs on imports from eight European countries such as the Netherlands, France, Denmark, Finland, the U.K., Germany, and Sweden, beginning Feb. 1, rising to 25% by June unless there is an agreement over Greenland.

In response, the European Union is preparing possible retaliation should these tariffs be enacted. The EU is considering reactivating €93 billion in tariffs on U.S. goods, targeting products such as aircraft, cars, and bourbon — and is also exploring the use of the anti-coercion instrument, a trade defense mechanism that has never been used. European Council President Antonio Costa has announced an emergency meeting in Brussels later this week to coordinate the bloc’s response.

Meanwhile, ongoing geopolitical and trade tensions are driving commodity markets. Gold futures have risen by more than 1.6% on the session, trading near multi-year record levels around $4,670 per ounce, and silver futures are up over 5%, pushing above $93 per ounce as investors seek safe-haven assets. Brent crude and other energy commodities have been relatively muted or slightly lower amid the risk-off sentiment.

Benedetta Zimone