European shares gain momentum following Trump’s tariff shift

European markets reacted positively following Donald Trump’s State of the Union address, after the entry into force of global tariffs set at 10% instead of the previously proposed 15%, easing some investor concerns about the scale of trade restrictions.

The pan-European STOXX Europe 600 was up 0.5% shortly after the opening bell, reflecting broadly upbeat sentiment across sectors. In the U.K., the FTSE 100 outperformed its continental peers, rising 0.8% in early deals as investors showed renewed appetite for risk.

Meanwhile, Germany’s DAX advanced around 0.3%, tracking gains in industrial and export-focused stocks. France’s CAC 40 also climbed roughly 0.3%, supported by strength in luxury and financial shares.

The synchronized uptick across Europe suggests cautious optimism among investors at the start of the trading session, with market participants monitoring economic data releases and corporate developments expected later in the week.

The positive open for European stocks follows a higher close for regional bourses on Tuesday, as investors assessed the evolving global trade landscape after Trump’s latest tariff decision. In his State of the Union speech on Tuesday night, Trump said he believed the new tariffs could eventually replace income tax revenue, a remark that drew close attention from markets.