Major indices suffer heavy losses as EU ministers prepare to discuss response to US president\u2019s latest trade salvo.<\/p>\n
Europe\u2019s stock markets have dropped sharply as investors weigh United States President Donald Trump\u2019s latest tariff threats against the European Union and Mexico.<\/p>\n
Major European indices suffered heavy losses on Monday as EU ministers were set to discuss their response to Trump\u2019s plans to impose a 30 percent tariff on the bloc\u2019s goods from August 1.<\/p>\n
Germany\u2019s benchmark DAX had fallen nearly 0.9 percent as of 08:30 GMT, while France\u2019s CAC 40, Italy\u2019s FTSE MIB and Spain\u2019s IBEX 35 were down 0.7 to 0.8 percent.<\/p>\n
The pan-European STOXX 600 index dipped about 0.5 percent.<\/p>\n
The United Kingdom\u2019s FTSE 100 bucked the sell-off, rising about 0.2 percent.<\/p>\n
In Asia, Japan\u2019s Nikkei 225 fell about 0.3 percent, while Hong Kong\u2019s Hang Seng edged up by about the same amount.<\/p>\n
US futures, which are traded outside of regular market hours, fell early on Monday, with those tied to the S&P 500 and Nasdaq Composite indices both dropping more than 0.5 percent.<\/p>\n
Markets are on edge ahead of Trump\u2019s August 1 deadline for US trading partners to reach trade deals or face steep tariffs.<\/p>\n
Despite months of negotiations, the Trump administration has so far announced agreements with only the UK, China and Vietnam.<\/p>\n
EU officials have threatened to impose retaliatory tariffs on US goods worth about 100 billion euros ($117bn) if Brussels and Washington are unable to reach a deal.<\/p>\n
The EU is the US\u2019s largest trading partner, with their two-way trade in goods and services amounting to 1.7 trillion euros ($2 trillion) in 2024, according to the EU statistics agency Eurostat.<\/p>\n