US Tariffs on EU Spark Global Market Uncertainty

European markets are expected to open flat to lower on Monday due to U.S. President Donald Trump's announcement of a 30% tariff on goods imported from the EU. The EU has said it will not retaliate immediately but will consider countermeasures if necessary. The tariffs are expected to hit European firms hard, particularly in the pharmaceutical, autos, and aircraft machinery sectors, with Germany and Ireland being the most exposed economies. Earnings estimates for European companies have fallen sharply, with the Stoxx 600 expected to see a 0.2% decline in earnings per share in the second quarter. Meanwhile, Bank of England Governor Andrew Bailey said the central bank is likely to continue cutting interest rates if the UK's job market slows.

The EU has delayed its retaliatory tariffs on US exports until early August, European Commission President Ursula von der Leyen announced, in response to US President Donald Trump's initial import taxes on steel and aluminium. The EU had previously suspended its countermeasures worth €21bn in March and has now extended the break. The move comes after Trump threatened to impose 30% tariffs on EU imports from August 1 unless a negotiated solution is reached, and warned of further tariffs if the EU retaliates.

The European Union will delay imposing retaliatory tariffs on U.S. goods, scheduled to take effect on Monday, in hopes of reaching a trade deal with the Trump administration by the end of the month. EU Commission President Ursula von der Leyen said the delay until August 1 is an opportunity for negotiations, following a letter from President Trump announcing new 30% tariffs on EU goods, citing the U.S. trade deficit as a national security threat. The EU had planned to impose "countermeasures" in response to U.S. tariffs, but will now continue negotiations, with EU trade ministers set to meet on Monday to discuss trade relations with the U.S.

U.S. President Donald Trump announced 30% tariffs on goods imported from the European Union and Mexico on Saturday, surprising markets. The move is expected to hit European firms hard, with earnings per share for companies in Europe's Stoxx 600 likely to drop in the second quarter. U.S. stock futures slipped Sunday evening, while Asia-Pacific markets mostly rose on Monday. China's exports growth in June beat expectations, and Nvidia's CEO said the company's chips won't be used by the Chinese military. The EU had suspended retaliatory tariffs, which were set to take effect Monday, in hopes of reaching a deal.

European companies are set to report their second-quarter earnings against a backdrop of macroeconomic uncertainty driven by US President Donald Trump's trade tariffs. Earnings per share across Europe's Stoxx 600 index are expected to fall 0.2% year-over-year, according to LSEG I/B/E/S research, marking the first decline since Q2 2024. The energy, cyclical consumer, and financial sectors are being closely watched. Energy earnings are expected to decline over 15%, while cyclical consumer earnings are forecast to slide 24.1%. Financials are expected to see subdued growth of just under 2%. The strength of the euro and potential tariff impacts are also concerns for investors. Key companies to report include Equinor, TotalEnergies, Christian Dior, LVMH, Lloyds Bank, and BNP Paribas.

US President Donald Trump has announced a 30% tariff on imports from the European Union, effective August 1, citing the US trade deficit as a national security threat. The tariffs could affect a range of EU goods, including French cheese, Italian leather goods, and German electronics. The EU's European Commission President Ursula von der Leyen has warned of "proportionate countermeasures" if the tariffs are imposed, stating that the EU remains open to a trade agreement but is prepared to retaliate. Trump has also imposed a 30% tariff on goods from Mexico, citing concerns over narcotics trafficking. The EU and Mexico are negotiating to avoid the tariffs, with the EU considering retaliatory tariffs on US products such as beef, auto parts, and Boeing aeroplanes.

The European Union is facing pressure from both the US and China, with the US announcing a 30% tariff on EU-made goods and China having a bruising encounter with the EU over Russia. The EU is set to discuss a response to the US tariffs, with some leaders calling for retaliation, while others, like EU Commission President Ursula von der Leyen, have opted to extend the suspension of countermeasures. EU leaders will then travel to Asia for a series of summits, including a challenging one in Beijing.

U.S. equity futures fell on Sunday as investors reacted to President Donald Trump's announcement of 30% tariffs on the European Union and Mexico starting August 1. The S&P 500, Nasdaq 100, and Dow Jones Industrial Average futures all dropped around 0.6%. The news comes ahead of this week's inflation readings and a busy earnings season, with major banks like JPMorgan Chase and Goldman Sachs set to report quarterly results. The major averages had a negative week, with the S&P 500 and Dow Jones Industrial Average snapping winning streaks, although they remain near record highs.

Asia-Pacific markets traded mixed on Monday as investors assessed the impact of U.S. President Donald Trump's 30% tariffs on the European Union and Mexico. Bitcoin hit a record high above $120,000, while China's exports beat expectations in June. Japan's 10-year government bond yield rose to a near two-month high. Indian stocks opened lower, with the Nifty 50 dropping 0.43%. Singapore's economy grew 4.3% year-over-year in the second quarter, beating expectations, but warned of 'uncertainty'. The Nikkei 225 and S&P/ASX 200 opened lower, while the Kospi and Hang Seng indexes were up marginally.

American CEOs are preparing for the summer earnings season, a period of corporate transparency where companies release their second-quarter results. Initially, the outlook was grim due to a trade war launched by President Donald Trump, rising costs, and slowing economic growth. CEOs will face tough questions from analysts about declining profits during earnings calls, making it a challenging period for corporate leaders to maintain investor confidence.