Europe close: Stocks hit by fresh US tariff announcement
By Alexander Bueso
Date: Tuesday 11 Mar 2025
(Sharecast News) - European markets were in the red on Tuesday after the US announced that it would double its tariffs on Canadian steel and aluminium.
The pan-regional Stoxx 600 index fell 1.70%, with Germany's DAX 1.29% lower and France's CAC 40 off by 1.31%.
That followed a sell-off on Wall Street overnight amid fears that tariffs imposed by the White House will fuel inflation and lead to a slowdown in the world's largest economy.
"President Trump's announcement that, starting Wednesday, the United States will double tariffs on Canadian steel and aluminum imports from 25% to 50%, in retaliation for Ontario's recent 25% surcharge on electricity exports to the US, exacerbated Monday's sharp sell-off which pushed the S&P 500 to a six-month low and wiped $4 trillion off its valuation," said IG senior technical analyst Axel Rudolph.
The S&P 500 fell 2.7%, the Dow Jones 2% and the tech-heavy Nasdaq 4% on Monday as investors dumped stock in the so-called "magnificent seven" - Alphabet, Amazon, Apple, Microsoft, Meta, Nvidia and Tesla.
In equity news, shares in Swiss power company BKW slumped 7% after annual results.
German arms maker Rheinmetall was up 3% on hopes of higher defence spending as talks started in Saudi Arabia between US and Ukraine officials on a ceasefire in the war with Russia.
Volkswagen shares slipped even as the German auto giant targeted a 5% rise in revenue this year.
Galderma fell 5% after shareholders offloaded a 6.3% stake in the Swiss skincare group.
Henkel sank 11% as the German consumer goods and adhesives maker issue a softer forecast for 2025 organic sales growth.
Travel and leisure stocks fell on the back of US outfit Delta Air Lines lowering its quarterly outlook with shares in shares of Easyjet, Carnival, International Consolidated Airlines and InterContinental Hotels all lower.
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