Europe midday: Shares rally despite Trump imposing 10% tariff

(Sharecast News) - European shares rallied by lunchtime on Tuesday as investors navigated the latest tariff policy from US President Donald Trump.

The pan-regional Stoxx 600 index was up 0.13% to 628.54 at 1201 GMT. Germany's DAX rebounded to be 0.05% higher and France's CAC gained 0.17%. US shares had fallen overnight on tariff concerns and fears about the threat to jobs from artificial intelligence.

Trump imposed a 10% blanket levy on all imports after the Supreme Court last Friday ruled his so-called "emergency" tariffs illegal, enraging the authoritarian leader. He had threatened 15% as allowed under the executive order authorising the new charges but had not done so by midnight in Washington.

The new tariffs, which are being applied under Section 122 of the 1974 Trade Act, have sparked uncertainty with US trading partners. It gives Trump 150 days to impose the levies without congressional approval.

On Monday the European Union suspended ratification of the deal it had struck with the US last July for the second time in a month, after it froze and unfroze the deal in the wake of Trump's threat to take over Greenland. The deal was for 15% blanket tariffs on EU imports that included previous levies.

"The president expressed frustration, but signing an agreement without fully understanding the details is not the European way. As a result, the deal risks unravelling before it is even implemented - a significant waste of time and political capital," said Swissquote Bank analyst Ipek Ozkardeskaya.

The president is scheduled to deliver his annual State of the Union address later on Tuesday with eyes on what his next tariff move might be after he warned trade partners not to "play games" over already-agreed deals.

In equity news, Mandatum plunged after private equity firm Altor dumped 35 million shares in the Finnish asset manager at a 7% discount.

MTU Aero fell despite forecasting 2026 revenue and profit to be broadly in line with forecasts as expected sustained high demand for its engine maintenance services.

Convatec gained after the UK firm lifted its medium-term organic revenue growth target, citing a strengthening medical product pipeline.

Reporting by Frank Prenesti for Sharecast.com