European shares are lower again Tuesday, as investor concern amid growing tariff tensions between the US and China escalates. Auto stocks are the hardest hit from the ongoing discord, although few stocks are moving higher.
By 1250 BST, the EUROSTOXX 600 slipped 0.93%, while the EUROSTOXX 50 lost 1.33%. The German DAX fell 1.53%, the French CAC was down 1.33% and the Spanish IBEX was 0.81% in the red.
US-China tariff disagreement
Investor sentiment remains downbeat as the US-China tariff tit-for-tat scenario continues. After confirming the US will impose a 25% import tax on over 800 items from China, Beijing reciprocated with its own 25% import tariff plans.
Moving on from that, US President Trump said Monday that some additional China import items may now a US tax. Trump has reportedly requested the US trade representative to pick out up to $200 billion worth of goods from China that could be subjected to a 10% import tax rate.
According to a statement from the President, the potential new duties could go into effect “if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced.”
The ongoing trade tariff disagreement between the US and China has been building for some time now. And, while its only US and China imports that are currently set to be hit, that could affect a multitude of other industries due to the way goods are manufactured in cross-border arrangements.
That negative tone pervades the entire stock market and most stocks are trading lower.
Auto stocks are lower, including:
- BMW shares down 1.39% at €83.57.
- VW shares lost 2.33% to trade at €150.60.
- Daimler shares are 2.01% lower at €60.49.
Elsewhere, luxury goods makers were also spooked by the potential wider impact of more expensive trade tariffs. Hermes shares were 1.79% lower at €538.20, LVMH shares were off 2.48% at €289.35 and Gucci owner Kering shares were 2.59% in the red at €495.60.