European shares drop on Trump's plan to implement tariffs

28 Feb European shares drop on Trump’s plan to implement tariffs

Posted at 09:48h in Insights by Editor

European shares extended declines on Friday, as market sentiment was dented after U.S. President Donald Trump said his proposed tariffs on Mexican and Canadian goods would take effect next week.

The pan-European STOXX 600 index was down 0.9%, as of 0813 GMT, with broader losses led by basic resources which slid 2% as metal prices came under pressure due to the U.S.’ imminent tariff plans.

Trump also vowed a fresh 10% duty on Chinese imports on top of the already existing 10% tariff levied on February 4.

Technology stocks lost 1.9%, following a sell-off in AI darling Nvidia on Wall Street after its earnings report failed to impress investors.

Automakers also dropped 1%, continuing their decline from the previous session when Trump floated a 25% “reciprocal” tariff on European cars and other goods.

Valeo fell 8.1% after the car parts supplier reported its annual results. CEO Christophe Perillat said he saw a marginal impact on earnings from U.S. tariffs on steel and aluminium. Holcim, however, gained 1.5% as the building materials company reported better-than-expected fourth-quarter earnings.

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