European shares under pressure amid new tariff threats from Trump

European stock markets came under pressure on Monday following renewed tariff threats from former U.S. President Donald Trump, fueling investor concerns over escalating global trade tensions.

Trump's announcement of plans to sharply increase tariffs on a range of imports if re-elected has sparked fresh uncertainty in global markets, particularly among export-driven European companies. The prospect of higher U.S. trade barriers is raising fears of a new wave of protectionism that could disrupt global supply chains and dampen corporate profits.

Automakers, industrial firms, and luxury goods producers — sectors heavily exposed to U.S. trade policy — led the losses across major European indexes. Germany’s DAX and France’s CAC 40 both edged lower, while the pan-European STOXX 600 index slipped as investors reacted to the geopolitical risks.

“The return of tariff threats is reigniting trade war concerns at a time when global growth is already fragile,” said an analyst at a leading investment bank. “European exporters are particularly vulnerable, especially if the U.S. targets autos and other key manufacturing sectors.”

Trump’s latest rhetoric follows his move to double tariffs on global steel and aluminum and suggests a broader strategy aimed at reshaping trade relationships. He has also taken aim at the European Union in the past, accusing it of unfair trade practices — a stance that may resurface if he regains power.

Market participants now await further clarity on U.S. trade policy, with some bracing for retaliatory measures and a potential escalation in trade disputes. Until then, sentiment in European markets is expected to remain cautious.