Trump EU tariff threats, UK election weigh on sentiment in Europe
Pedestrians shelter from the rain under umbrellas as they pass the Elizabeth Tower, commonly known by the name of the clock’s bell, “Big Ben”, at the Palace of Westminster, home to the Houses of Parliament, in London on February 22, 2024.
Henry Nicholls | AFP | Getty Images
European equity markets are expected to open broadly lower on Friday, after U.S. President Donald Trump threatened “much higher” tariffs against the EU.
Futures tied to London’s FTSE 100 were down by 0.7% ahead of the final trading session of the week. Those tied to the German DAX and France’s CAC 40 were 0.9% and 1% lower, respectively. Pan-European Stoxx 50 futures were last seen trading 0.7% lower.
In a Truth Social post on Thursday evening, Trump said he had been “waiting patiently for the EU to fulfill their side of the Historic Trade Deal” that was agreed last July, when the U.S. and the EU reached a deal to lower tariffs on the European trading bloc from a threatened 30% to 15%.
In Thursday’s post, Trump said the EU had promised to “deliver their side of the deal” and cut their tariffs on American goods to zero.
“I agreed to give her until our Country’s 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels,” he said of a call with EU Commission President Ursula von der Leyen.
In February, after Trump said he would impose a global blanket tariff of 15% after the Supreme Court struck down his reciprocal tariffs regime, a top EU trade lawmaker told CNBC the U.S. had breached the terms of the deal “several times.”
Lawmakers in Brussels paused a parliamentary vote on the trade deal following those threats from Trump, with one official lambasting the president’s move as “pure tariff chaos.”
The U.S.-Iran war also remains in focus, with both sides trading fire overnight. In a phone call with a reporter at ABC News, Trump said the strikes were “just a love tap” and insisted the fragile ceasefire between the two sides was still in effect.
Back in Europe, the U.K. is counting votes from local council elections. Early results show losses for the governing Labour party and its main opposition, the Conservative Party. Right-wing party Reform UK and the left-wing Green party are widely expected to make gains.
Votes are still being counted, but heavy losses for Labour are expected to raise questions about Prime Minister Keir Starmer’s already shaky leadership.
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