Reported by Tahir Ishaq Shehu
European stock markets declined sharply on Friday as investor anxiety mounted ahead of a crucial U.S. tariff decision expected on July 9. The potential escalation in trade tensions weighed heavily on sentiment across the continent.
The pan-European STOXX 600 index fell 0.9% to 539.05 by 08:56 GMT, on track for its first weekly loss in three. Major national indices mirrored the drop:
Germany’s DAX: -0.9%
France’s CAC 40: -1.2%
Spain’s IBEX 35: -1.7%
UK’s FTSE 100: -0.4%
The declines come amid signs that U.S. President Donald Trump will begin notifying trading partners of new tariff rates, following a 90-day pause set to expire next week. The move has reignited concerns over global trade stability, particularly as the European Union races to strike a last-minute deal to avoid fresh duties on key exports such as automobiles, aluminum, and steel.
Brussels is pushing for an “agreement in principle” to avert the looming tariffs, but with just days left, a resolution remains uncertain.
Meanwhile, in a blow to French exporters, China’s Commerce Ministry announced it will impose anti-dumping duties of up to 34.9% on European brandy imports most of which come from France. The duties will take effect from July 5 and will remain in place for five years. The move, widely seen as retaliatory, targets producers that fail to comply with pricing rules and is expected to hit French cognac makers hard.
Shares of French luxury beverage firms fell on the news, reflecting investor fears over reduced demand in one of their top markets.
In corporate news, BPER Banca (BIT:BPE) shares rose after the Italian lender raised its takeover bid for Banca Popolare di Sondrio to €5.9 billion ($6.39 billion), intensifying consolidation in Italy’s banking sector.
The growing trade friction has cast a shadow over what had been a hopeful start to the second half of the year. While economic data has been solid and early earnings results promising, geopolitical tensions are keeping investors on edge.
With the July 9 tariff deadline looming and no breakthrough in U.S.-EU trade negotiations, risk appetite remains subdued across European markets.
