European Shares Set To Fall As Trump Imposes Sweeping New Tariffs

(RTTNews) - European stocks are seen opening deep in the red on Thursday after U.S. President Donald Trump announced a 20 percent levies on European goods.

Tariffs of 25 percent on automobiles made outside the U.S. were also announced with immediate effect.

Sweden and Ireland said in statements that they "regret" the additional tariffs.

"The universal tariffs announced by the U.S. are a major blow to businesses and consumers worldwide. Europe is prepared to respond. We'll always protect our interests and values. We're also ready to engage," President of the European Commission Ursula von der Leyen said in a post on X.

Asian stocks drifted lower and U.S. stock futures tumbled on fears that Trump's sweeping tariffs of at least 10 percent and even higher for some countries may stoke a global trade war, fuel inflationary pressures and weigh on global growth.

China vowed countermeasures if the U.S. doesn't immediately cancel latest tariffs.

The effective tariff rate for China is now 54 percent when accounting for the new reciprocal rate and duties already levied against the country.

U.S. Treasury Secretary Scott Bessent has warned trading partners that any retaliation to the barrage of new tariffs from the White House would only result in further escalation.

U.S. recession fears stoked safe-haven demand for bonds, gold and the yen, while crude prices were down more than 2 percent in Asian trade.

In economic news, U.S. reports on weekly jobless claims, trade balance and service sector activity may garner some attention later in the day.

U.S. stocks recovered from an early slide to end higher overnight ahead of President Trump's tariffs announcement.

There was cheer on the economic front, with private sector employment rising more than expected in March and new orders for manufacturing goods increasing solidly in February.

The tech-heavy Nasdaq Composite climbed 0.9 percent, the S&P 500 added 0.7 percent and the Dow rose 0.6 percent.

European stocks closed on a weak note Wednesday on tariff jitters. The pan European STOXX 600 fell half a percent.

The German DAX declined 0.7 percent, France's CAC 40 eased 0.2 percent and the U.K.'s FTSE 100 dipped 0.3 percent.