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📍 Brussels, July 14, 2025 — European stock markets opened in negative territory on Monday following U.S. President Donald Trump’s announcement of a 30% tariff on European Union imports, set to take effect on August 1. The move has rattled investors and intensified concerns over transatlantic trade relations.
📉 Market Reaction As of 9:30 a.m. CEST:
- France’s CAC 40: −0.52% to 7,788.23
- UK’s FTSE 100: −0.38% to 8,941.12
- Germany’s DAX: −0.85% to 24,049.73
- Spain’s IBEX 35: −0.80% to 13,897.80
- Italy’s FTSE MIB: −0.86% to 39,726.27
- STOXX 600: −0.48% to 544.73
- EURO STOXX 50: −0.83% to 5,338.57
📜 Tariff Timeline and Negotiations Trump’s tariff threat follows months of stalled negotiations and a previous proposal to raise duties to 50%, which was later scaled back. The new 30% rate is separate from existing sectoral tariffs on steel, aluminium, and automobiles.
European Commission President Ursula von der Leyen confirmed that the EU would not impose retaliatory tariffs before August 1, allowing time for continued dialogue.
“We have always been very clear that we prefer a negotiated solution,” she said.
EU trade ministers convened in Brussels to discuss next steps. Maroš Šefčovič, the EU’s chief negotiator, reiterated the bloc’s commitment to diplomacy:
“A negotiated solution is much better than the tension we might have after August 1,” he stated.
📦 Strategic Response and Global Outreach In response to rising U.S. protectionism, the EU is intensifying efforts to diversify trade partnerships. A summit in China later this month will focus on strengthening ties with Asia-Pacific nations, including Japan, South Korea, Vietnam, and Indonesia.
📌 Defence Spending Amid Economic Uncertainty Despite market unease, France announced a €6.5 billion increase in defence spending over the next two years, with €3.5 billion allocated for 2026 and €3 billion for 2027, signaling a broader shift toward strategic autonomy.
For full coverage of the EU’s trade response and market impact, see reports from RTÉ News, Deutsche Welle, and CNBC.
