The FTSE 100 (^FTSE) ticked higher and European stocks dropped on Monday morning, as traders digest the latest round of tariff threats by US president Donald Trump.

Last week, the US premier unveiled a new batch of letters to country leaders outlining tariffs on goods imported from their countries beginning in August alongside a warning to BRICS nations.

Trump announced a 35% tariff on Canadian goods last week, claiming Canada had “financially retaliated” to earlier duties. He followed that up this weekend with promises of 30% duties on Mexico and the European Union.

Trump also floated 15% to 20% blanket tariffs on most trading partners, higher than the 10% level currently in effect.

The fresh tariff salvos capped a week in which Trump sent a barrage of tariff letters to over 20 trade partners, setting levels of 20% to 40% — except for a 50% levy on goods from Brazil in a move that waded into the country’s domestic politics.

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Meanwhile, Trump also has confirmed 50% copper import tariffs from 1 August to match steel and aluminium. Trump’s copper tariffs are also set to include the kinds of materials used for power grids, the military and data centres, a Bloomberg report highlighted on Friday.

The US and UK have already struck a partial trade deal, meaning tariff threats have less impact on the FTSE.

London’s premier index ticked up 0.2% in early trade. Drugmaker AstraZeneca (AZN.L) rose the most following a dip last week.

The FTSE 250 (^FTMC) fell slightly, meanwhile, following British Retail Consortium data showing that footfall declined slightly on the UK’s high streets in May due to heat and thunderstorms.

The DAX (^GDAXI) fell around 0.9% in Germany.

In Paris, the CAC 40 (^FCHI) dipped about 0.7%.

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Bitcoin heads to $120k

Bitcoin (BTC-USD) rallied to new highs on Monday, moving past the symbolic $120,000 mark as traders cheer more crypto-friendly policies in the US.

A series of bills are up for debate in the House of Representatives this week which will put the regulatory framework for the crypto market on clearer footing.

Bitcoin’s price has more than doubled in value year-on-year, and was closing in on $122,500 on Monday morning.

Here’s the US stock futures chart
US stock futures dip on new tariff worries

Our US team writes:

US stock futures fell on Monday as Wall Street braces for a turbulent week, with renewed trade tensions and a wave of second-quarter earnings set to test investor sentiment.

Futures tied to the S&P 500 (ES=F) slid 0.6%, while Nasdaq 100 (NQ=F) futures dropped 0.6%. Dow Jones Industrial Average (YM=F) futures also fell around 0.6%.

The moves follow President Donald Trump’s announcement Saturday that the US will impose 30% tariffs on goods from the European Union and Mexico starting August 1. The new duties raise the stakes for global trade relations and add to existing inflationary pressures. Officials from the EU and Mexico have signaled a willingness to continue negotiations in hopes of securing a reduced rate.

The declines come on the heels of a losing week for stocks, even as indexes remain near record highs. All three major indexes ended three-week winning streaks.

Good morning!

Hello from London. Lucy Harley-McKeown here,r ready for another no doubt eventful week of markets news.

Today we’re looking ahead to big bank earnings, with Wells Fargo (WFC), JPMorgan (JPM), Blackrock (BLK) and Citigroup (C) on the slate.

In UK news we have the British Retail Consortium’s retail sales monitor.

Let’s get to it.