Following US President Donald Trump's imposition of trade tariffs on three of its main trading partners and his threat to follow suit with the European Union and the United Kingdom, European stock markets experienced a significant decline on Monday.



At 03:05 ET (08:05 GMT), the UK's FTSE 100 sank 1.3%, France's CAC 40 plummeted 2%, and Germany's DAX index fell 2%.

Trump's tariffs hurt people's feelings
Over the weekend, President Trump declared that the United States would impose 10% tariffs on Chinese goods and 25% taxes on imports from Canada and Mexico. The tariffs are scheduled to take effect on Tuesday.

Over 40% of all U.S. imports, or $1.3 trillion worth of goods, will be impacted by the US tariffs.

China promised to contest the tariffs at the WTO, while Canada and Mexico promptly threatened retaliatory taxes.

Furthermore, Trump stated that comparable tariffs with the European Union "will definitely happen" in a BBC interview. Although he stated that the matter "can be worked out," he did not rule out levying taxes on items made in the UK.

Investors had anticipated that Trump would soften his tone when the decisions were made, despite the fact that the newly-installed president had promised such actions during his campaign.

As a result, aggressive selling greeted equity indexes in Asia and Europe, and US futures likewise indicated sharp declines on Wall Street later in the day.

Due date for Eurozone inflation statistics

Regarding economic statistics, investors will pay close attention to the January final publication of the eurozone manufacturing PMI and, more crucially, the region's flash CPI.

Last week, the European Central Bank lowered interest rates for the seventh time since June in an effort to boost faltering regional economies while keeping inflation low.


In January, the eurozone CPI is predicted to be 2.4% annually, which is only slightly higher than the ECB's medium-term aim of 2.0%.

Julius Baer observes an increase in AUM
The Swiss wealth manager Julius Baer (SIX:BAER) reported a 16% increase in assets under management to a record $545 billion in 2024, which helped the company's net profit soar.

As the automaker continues with a reorganisation it began after former CEO Carlos Tavares resigned in December, Stellantis (NYSE:STLA) announced adjustments on Monday that are intended to streamline its structure and expedite procedures.

Monday's focus will be on the automotive industry because firms like Stellantis and Volkswagen (ETR:VOWG_p) operate in Mexico and are therefore vulnerable to the effects of US tariffs.

Crude increases due to worries over supply disruptions
Concerns about possible disruptions in oil supply chains were heightened Monday by President Trump's announcement of tariffs on imports from two of the US's largest suppliers, which caused oil prices to rise.

The Brent contract increased 1.2% to $76.58 a barrel by 03:05 ET, while the US crude futures (WTI) increased 2.1% to $74.08 a barrel.

Every day, the US imports about 500,000 barrels of Mexican oil and almost 4 million barrels of Canadian oil.

It is anticipated that the recently implemented tariffs will raise expenses for US refiners, particularly those located in the Midwest and Gulf Coast regions. This could result in increased fuel prices and possible reductions in production.