European Shares Set For Weak Start As Trump's New Tariffs Kick In

(RTTNews) - European stocks may drift lower at open on Friday after U.S. President Donald Trump signed a new executive order that imposes fresh import tariffs on a vast array of goods coming from 69 countries and the European Union.

The tariffs range from 10 percent to 41 percent, with India, Brazil and Canada facing steep tariffs as Trump pushes to rebalance deficits and protect American manufacturing, citing national security.

The move has already triggered diplomatic tensions and threats of retaliation, though market reaction remains muted following earlier tariff announcements in April.

Countries not on the list will face a flat 10 percent import tax as of now. Trump increased duties on Canadian goods to 35 percent from 25 percent for all products not covered by the U.S.-Mexico-Canada trade agreement, but Mexico got a 90-day reprieve from higher tariffs to negotiate a broader trade deal.

The U.S. has warned China of 100 percent tariffs over sanctioned Russian oil purchases.

In economic releases, the U.S. Labour Department's closely watched monthly jobs report along with a report on manufacturing activity will be in the spotlight later today.

On the earnings front, Apple shares rose in extended trade after the company reported a June quarter revenue record with double-digit growth in iPhone, Mac and Services and growth around the world.

Amazon shares plunged over 7 percent in afterhours trading as cloud computing results failed to impress.

Asian markets were mostly lower as a private gauge of China's manufacturing activity returned to contractionary territory in July and South Korea unveiled plans to raise taxes on corporations and stock investors.

Japan's Finance Minister said he's worried by movements in the yen, which weakened to levels last seen in March.

Oil prices steadied after falling from six-week highs on concerns that the economic fallout of U.S. tariffs could weigh on global growth and dent global energy demand.

Gold dipped below $3,300 an ounce and the dollar strengthened ahead of the U.S. jobs data that could influence the Federal Reserve's rate trajectory.

U.S. stocks reversed course to end lower overnight as economic concerns offset upbeat earnings news from tech giants Meta Platforms and Microsoft.

The Fed's preferred measure of underlying inflation accelerated in June to one of the fastest paces this year while consumer spending barely rose, clouding the outlook for economic growth and interest rates.

Meanwhile, as the clock ticked down to the tariff deadline, President Trump announced a trade deal with South Korea, a 90-day extension of the 25 percent blanket tariff on Mexican imports as well as 25 percent tariff on cars and a 50 percent tariff on steel, aluminum and copper.

Treasury Secretary Scott Bessent said in an interview that he believes the U.S. and China "have the makings of a deal" and expressed confidence an agreement would be reached.

The tech-heavy Nasdaq Composite finished marginally lower, the S&P 500 dipped 0.4 percent and the Dow gave up 0.7 percent.

European stocks ended at over one-week low on Thursday, with some disappointing earnings and trade tensions keeping investors on edge.

The pan European STOXX 600 declined 0.8 percent. The German DAX shed 0.8 percent, France's CAC 40 lost 1.1 percent and the U.K.'s FTSE 100 ended marginally lower.