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Europe open: Shares fall sharply as Trump unleashes new tariff hit

Fri 01 August 2025 07:52 | A A A

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(Sharecast News) - European shares fell sharply at the open as US President Donald Trump announced the latest raft of tariffs in his trade war with the rest of the world.

The pan-regional Stoxx 600 index was down 0.8% at 541 at 0802 BST, with all major bourses following suit. Germany's DAX fell 1.27% and France's CAC 40 declined by 0.97%.

Trump ordered a 10% tariff on all countries except for a random list of 92 nations that would be subjected to higher levies. Canada was slapped with a 35% rate on goods not covered by the trade deal with the US and Mexico in a political retaliation for Ottawa's decision to recognise a Palestinian state.

However, in line with his recent actions, Trump said the measures would be delayed by a week, once again extending a deadline threat. Mexico was given another 90 day extension to come up with a deal.

In equity news, Engie shares slumped as the French energy utility posted lower half-year earnings.

Melrose Industries and British Airways owner IAG were up on the back of results.

Reporting by Frank Prenesti for Sharecast.com

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