Europe midday: Shares down as EU preps response to Trump 30% tariff

(Sharecast News) - European shares were lower at midday after US President Donald Trump said he would impose a 30% tariff on EU imports, despite months of talks on a trade deal.

The pan-regional Stoxx was down 0.55% at 544 in early deals with Germany's DAX felling 0.88% and France's CAC 40 declining 0.71%. Britain's FTSE 100 bucked the trend with a gain as the UK had already secured a 10% "deal" with Trump.

"Imposing 30 percent tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic," said European Commission President Ursula von der Leyen.

She said the 27-nation bloc was still "ready to continue working towards an agreement by August 1".

"At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required," von der Leyen added.

Swissquote Bank analyst Ipek Ozkardeskaya said the US levy was "far more than what the EU expected - they were hoping for a figure closer to what the UK secured: a 10% tariff, with exceptions for key sectors like metals and pharmaceuticals. Instead, they got a big, fat 30%".

"Trump did leave the door open for further negotiations and some fine-tuning, but given the level of tariffs unveiled since last week, you have to wonder whether it's worth the time and energy to negotiate with a government that appears to have lost the plot - or if it's better to pursue other deals with other nations. That's what the Europeans are now discussing: finding new friends."

In equity news, Lifco shares plunged as the Swedish conglomerate posted a fall in second-quarter earnings.

Reporting by Frank Prenesti for Sharecast.com