European markets opened in negative territory on Friday, after U.S. President Donald Trump threatened once again to slap tariffs on the EU and followed through with new levies on Canada and Mexico.
The pan-European Stoxx 600 index was 0.5% lower during early trade, with almost every sector losing ground. All major bourses saw losses, with France’s CAC 40 and the German Dax both down more than 0.5%.
Regional markets ended Thursday’s session lower after Trump threatened to impose 25% duties on imports from the EU, saying the tariffs would be announced “very soon” and apply to “cars and all other things.”
The president also confirmed on Thursday that sweeping 25% tariffs on goods entering the U.S. from Canada and Mexico would come into effect on March 4, while China will face additional 10% tariffs from that date.
Following talks with U.K. Prime Minister Keir Starmer in Washington on Thursday, Trump hinted that Britain may manage to avoid his tariffs regime.
“I think there’s a very good chance in the case of these two great, friendly countries, I think we could very well end up with a real trade deal where the tariffs wouldn’t be necessary,” the president told reporters at a press conference. “We’ll see.”
Trump added that Starmer had been “working hard” to convince him not to impose tariffs on the U.K., and that he was “very receptive to it.”
Corporate earnings will also remain in focus on Friday, with a slew of European firms poised to report on their finances. Those include Allianz, Sberbank, British Airways owner IAG, Holcim and UCB.
Economic data out of the region on Friday will include German retail sales for January, French inflation figures and an update to Britain’s Nationwide House Price Index.
