European Stocks Tumble As Trump Threatens Massive Tariffs On Chinese Imports

(RTTNews) - European stocks fell sharply on Friday as trade tensions intensified after U.S. President Donald Trump threatened that he will raise tariffs on Chinese imports, following China's decision to expand export controls on rare earth metals.

"I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so," Trump posted on Truth Social. "One of the policies that we are calculating at this moment is a massive increase of tariffs on Chinese products coming into the United States of America."

The ongoing political tension in France, weighed as well on sentiment. French President Emmanuel Macron has called a meeting of the country's mainstream political parties today ahead of a self-imposed deadline to name a new prime minister.

Defense stocks were under pressure after the Israeli government reportedly approved the first stage of a peace deal that will see the release of hostages held by Hamas.

Israel's Defense Forces said a ceasefire agreement in Gaza came into effect today, and troops were pulled back in some parts of the enclave.

Miners, pharmaceuticals and technology stocks also ended notably lower.

The pan European Stoxx 600 fell 1.25%. The U.K.'s FTSE 100 ended 0.86% down, Germany's DAX and France's CAC 40 closed down by 1.5% and 1.53%, respectively, while Switzerland's SMI lost 1.01%.

Among other markets in Europe, Belgium, Denmark, Iceland, Ireland, Netherlands, Portugal, Russia, Spain and Sweden closed with sharp to moderate losses.

Austria, Finland and Norway closed marginally down. Czech Republic and Greece ended week, while Poland and Turkiye closed flat.

In the UK market, Entain, Mondi, Glencore, Rightmove, Shell, JD Sports Fashion, ICG, Endeavour Mining, Anglo American Plc, BP, Antofagasta and Melrose Industries lost 2.5 to 4%.

Smith & Nephew, Halma, Diploma, Hikma Pharmaceuticals, Babcock International and Scottish Mortgage also declined sharply.

Admiral Group, Imperial Brands, Unilever, The Sage Group and St. James's Place gained 1 to 2%.

In the German market, Brenntag tumbled 5%. Infineon, MTU Aero Engines, Siemens Energy, Zalando, SAP, BMW, Volkswagen, Siemens Healthineers and Adidas lost 2 to 3.5%.

Vonovia bucked the trend and settled higher by about 1%.

In the French market, Stellantis lost nearly 7% on reporting a 13% increase in Q3 2025 shipments. ArcelorMittal closed nearly 6% down. Hermes International, Saint-Gobain, STMicroElectronics, LVMH, Renault, TotalEnergies and Thales lost 2 to 3%.

In economic news, UK permanent job placements declined at a softer pace and candidate supply increased sharply amid falling demand for staff in September, monthly data from S&P Global showed.

Permanent staff appointments dropped at the weakest pace in a year in September. That said, employers were hesitant to take on new workers due to weaker economic conditions and cost concerns, the KPMG/REC Report on Jobs said.

Meanwhile, temp billings dropped at a solid pace that was faster than in August.

Starting pay for permanent workers grew at the slowest pace in the current sequence of rise that began just over four-and-a-half years ago. Temp pay growth also slowed in September.

Data showed that overall vacancies continued to drop but the rate of contraction eased only slightly from August's six-month record.