This photo shows the flags of European countries waving in front of the European Parliament building in Strasbourg, eastern France, on June 6, 2024 (Photo by SEBASTIEN BOZON/AFP) (Photo by SEBASTIEN BOZON/AFP via Getty Images)
Sebastian Bozon | AFP | Getty Images
LONDON — European stock markets closed higher on Tuesday as investors assessed the new global trade environment following U.S. President Donald Trump’s latest tariff measures.
pan-european Stocks 600 Local stock exchanges were mixed, but closed 0.3% higher, reversing early losses.
Automobiles, one of the most sensitive sectors to tariffs and export policy, led the way, closing nearly 2% higher on Tuesday.
Regional stocks ended lower on Monday as global markets reacted to President Trump’s threat to immediately impose new 15% global tariffs on imports into the United States. The president initially announced plans to impose a 10% tariff on global imports, then raised that rate to a “fully authorized and legally tested 15% level.”
But when the levy took effect on Tuesday, the tax rate was 10%. According to a memo from U.S. Customs and Border Protection released Monday night, Section 122 of the Interim Tariff “imposes an additional 10% ad valorem tax on each country’s imports for 150 days, unless specifically waived.”
It is unclear whether this tariff will apply to the UK. Britain was the first country to reach a trade deal with Washington last year after President Trump fully unveiled the so-called reciprocal tariff system.
Britain secured a 10% tariff rate under the deal, the lowest level the White House would give to individual trading partners, and would stand to lose more than some other U.S. trading partners if the impending 15% tariff were applied to its products.
“I know the latest US announcement has created uncertainty, but I am committed to protecting businesses and British people in the national interest, and all options are on the table,” British Business and Trade Minister Peter Kyle said in a statement on Monday.
“That’s why I spoke to my US counterpart, Jamieson Greer, yesterday and raised concerns about further uncertainty for businesses here and the need to comply with existing agreements.”
European officials expressed concern over President Trump’s new tariffs, suggesting they could threaten trade deals with the United States.The European Parliament then announced on Monday that it had suspended ratification of the U.S.-EU trade deal agreed last summer.
U.S. stocks rose on Tuesday after falling in pre-market trading as software stocks rallied on lingering concerns about AI disruption as investors grapple with new trade policy.
President Trump continued to assert his ability to raise tariffs on Monday, warning of higher tariffs for countries that want to “game” after the Supreme Court struck down Trump’s “reciprocal” tariffs last week.
President Trump said over the weekend that the new 15% tariffs would go into effect immediately, but it’s unclear whether a formal document has been signed outlining the timing. He also said additional levies would be imposed in the coming months.
UK financier in company news standard chartered announced its full-year results on Tuesday, with pretax profit of $6.96 billion, up 16% from a year ago but below expectations. Net interest income rose 1% from a year earlier to $11.2 billion, beating LSEG’s consensus forecast.
The bank said it expects reported operating profit to reach the lower end of its growth forecast of 5% to 7% in 2026. Operating profit for 2025 was $20.9 billion, up 6% from the previous year, in line with expectations.
The stock closed 1.5% lower.
— CNBC’s Sean Conlon and Sarah Min contributed to this market report.
