European Shares Set For Lower Open With Focus On US Tariffs

(RTTNews) - European stocks look set to open broadly lower on Tuesday after U.S. President Donald Trump imposed new tariff rates on partners including Japan and South Korea but left the door open for additional negotiations, saying that the earlier notifications were "not 100 percent firm."

With the deadline for increased duties pushed off until at least Aug. 1, there are mild hopes for deals over punishing tariffs.

Meanwhile, the Trump administration has offered the European Union a proposal that would keep a 10 percent baseline tariff on all EU goods, with some exceptions for sensitive sectors such as aircraft and spirits, media reports suggest.

Asian markets were mostly higher following Trump's softened stance on tariff hikes. Gold steadied near $3,330 per ounce as the dollar weakened after rising the most in three weeks on Monday.

Oil prices drifted lower after Monday's surge as traders assessed the combined impact of trade uncertainties, a surprise output move by OPEC+ and an escalation of hostilities in the Red Sea.

The European economic calendar remains light, with foreign trade data from Germany and France awaited later in the day.

Overnight, U.S. stocks fell sharply on renewed trade, inflation and growth concerns as President Trump revealed plans to impose new tariffs on imports from at least seven countries.

Trump, in a series of Truth Social posts, shared signed letters addressed to various world leaders detailing new tariff rates set to take effect on August 1.

Imports from Japan, South Korea, Malaysia and Kazakhstan are now set to face 25 percent tariffs, according to the letters.

South African imports will be subject to a 30 percent tariff, while imports from Laos and Myanmar will face a 40 percent tariff.

Trump also warned that tariffs could be raised above the respective rates if the countries respond with their own tariffs on the U.S.

The Dow and the tech-heavy Nasdaq Composite both shed around 0.9 percent while the S&P 500 declined 0.8 percent.

European stocks ended mostly higher on Monday as investors waited for several trade deal announcements from the White House in the coming days.

The pan-European STOXX 600 gained 0.4 percent. The German DAX climbed 1.2 percent and France's CAC 40 added 0.4 percent while the U.K.'s FTSE dipped 0.2 percent.