EU markets opened lower following Trump’s new tariff decision

European markets reacted immediately to renewed U.S. tariff uncertainty after fresh measures were announced by Donald Trump, described as “effective immediately” in a Truth Social post, with additional levies potentially to follow.

In morning trade, the STOXX Europe 600 declined 0.3%, while the Euro Stoxx 50 slipped 0.24%. The pullback, though moderate, was concentrated in export-oriented and cyclical sectors, reflecting Europe’s structural sensitivity to global trade flows, while more defensive segments showed relative resilience.

The move comes after earlier tariff actions were struck down by the Supreme Court of the United States and subsequently reintroduced under alternative statutory authority, adding a layer of policy ambiguity that has unsettled risk sentiment and complicated transatlantic trade expectations.

At this stage, markets are repricing uncertainty rather than a full-scale trade shock, but the immediate implementation of tariffs raises short-term earnings visibility risks and increases the geopolitical risk premium embedded in European equities.

Further escalation or retaliatory measures could keep volatility elevated and limit near-term upside across the region’s major indices.