Overview
- President Donald Trump threatened 10% tariffs from February 1 on exports from eight European countries, potentially rising to 25% on June 1, linking the move to their opposition to his Greenland plans.
- Paris equities fell Monday with the CAC 40 down about 1.23%, luxury groups such as LVMH, Kering, and Hermès led declines, defense stocks gained, and gold jumped to around $4,700 an ounce.
- U.S. markets opened lower Tuesday, with the Dow Jones down about 1.22%, the Nasdaq off 1.58%, and the S&P 500 lower by 1.28% as investors shifted to a more defensive stance.
- European officials signaled retaliation options, with Ursula von der Leyen promising a firm, united, proportionate response and France set to seek activation of the EU anti‑coercion instrument alongside talk of reviving suspended counter‑tariffs.
- Trump also reportedly threatened 200% tariffs on French wine and champagne if France spurns his proposed Council of Peace, while analysts warned of economic and geopolitical fallout and revived protectionism fears.