U.S. Tariff Plans Shake European Markets Amid Trade Tensions
European stocks fell after Trump's proposed tariff hikes on U.S. steel and aluminum threatened to escalate trade tensions. The STOXX 600 index dropped slightly, with significant impacts on automakers and luxury sectors. Tensions were renewed amidst major economic announcements expected this week from the ECB and Federal Reserve.
European shares slid on Monday, driven by looming trade concerns sparked by U.S. President Donald Trump's recent tariff announcements. The plans include doubling tariffs on imported steel and aluminum, stoking fresh fears of trade conflicts.
The STOXX 600, encompassing a wide range of European shares, fell 0.5%, undoing some of the gains made in May. Automakers were affected, with significant drops in stock prices for Stellantis, Mercedes-Benz, BMW, and Volkswagen.
The market's volatility index climbed, indicating increased investor nervousness. Analysts foresee potential disruptions in luxury and export markets. The financial community awaits upcoming European Central Bank and Federal Reserve meetings, which could shape further economic directions.
(With inputs from agencies.)
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