European stock markets moved slightly lower on Tuesday as investors evaluated the evolving economic outlook following the implementation of new global trade tariffs by U.S. President Donald Trump.
At 03:05 ET (08:05 GMT), Germany’s DAX index declined 0.1%, France’s CAC 40 slipped 0.2%, and the UK’s FTSE 100 also fell 0.2%, reflecting cautious sentiment across the region.
New Tariff Landscape Adds Uncertainty
President Trump’s new global tariffs officially took effect at a 10% rate after a Supreme Court ruling invalidated a significant portion of his previous trade levies. The updated rate was confirmed via U.S. Customs and Border Protection.
Media reports indicate the White House is considering raising the tariff level to 15%, the rate President Trump referenced over the weekend in response to the court’s decision.
Investors are now questioning whether trade agreements negotiated before the ruling remain fully valid. A European Union assessment suggested that the revised tariff framework could lift duties on certain EU exports beyond levels previously agreed under existing trade deals.
President Trump is expected to address trade policy during his State of the Union speech to Congress later on Tuesday. He has already warned trading partners not to withdraw from recently negotiated agreements.
European Earnings Remain in Focus
Corporate earnings continued to shape market moves at the start of a busy reporting week.
Standard Chartered reported a 16% increase in full-year pretax profit, supported by strong performance in its global banking and wealth management divisions. The bank also announced a $1.5 billion share buyback and raised its annual dividend by 65%.
Telefonica posted a fourth-quarter net loss after recording €2.8 billion in restructuring charges, which offset improvements in operating performance as the company reshaped its portfolio and exited selected Latin American markets.
Fresenius Medical Care delivered a sharp rise in fourth-quarter operating income, aided by cost-saving measures and favorable reimbursement trends.
Croda International forecast higher adjusted earnings for 2025, driven by solid growth in its Consumer Care and Life Sciences segments.
The European automotive sector was also under scrutiny. According to data from the European Automobile Manufacturers’ Association (ACEA), EU new car registrations fell 3.9% year-on-year in January, marking the first decline since June. Battery-electric vehicles increased their market share to 19.3%, up from 14.9% a year earlier, while hybrid vehicles remained the dominant powertrain at 38.6%. Petrol and diesel models continued to lose market share.
Oil Prices Near Seven-Month Highs
In commodity markets, oil prices edged higher and remained close to seven-month highs ahead of a new round of U.S.-Iran nuclear talks later this week.
Brent crude futures rose 0.3% to $71.33 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 0.4% to $66.55 per barrel. Both benchmarks are trading near levels last seen in early August 2025.
The United States and Iran are scheduled to hold a third round of nuclear negotiations in Geneva on Thursday, as concerns grow over the possibility of military escalation while Washington continues to press Tehran to curb its nuclear programme.
