Europe open: Shares lower as Trump tariff threats hit sentiment again

(Sharecast News) - Tariff tremors hit European markets at the open on Friday as US President Donald Trump again threatened levies on the European Union and said those he planned for Canada and Mexico would start next week.

The pan-European Stoxx 600 index was down around 0.53% at 554 in early deals with all major bourses in the red. Trump on Thursday said a 25% tariff on the EU would apply to "cars and all other things", while also confirming the Mexico and Canada would be hit by the same amount on March 4.

China will face an extra 10% tariff rate from the same date. Trump is still claiming that his moves are linked to drug trafficking and illegal immigration.

Asian markets were sharply lower on the news.

"The only certainty in this saga is uncertainty, so keep a close eye on developments between now and 4 March. Next on the agenda is reciprocal tariffs pencilled in for 2 April with other major US trading partners. The EU, in particular, will be in focus," said Hargreaves Lansdown analyst Derren Nathan.

In another heavy day of corporate earnings, shares in airline group IAG jumped after annual results beat forecasts, while Rolls-Royce made further gains after bumper results on Thursday.

Teleperformance shares slumped after annual results late on Thursday.

Reporting by Frank Prenesti for Sharecast.com