European Markets Open Higher Despite Fresh Auto Tariff Threat From Trump

CNBC reported Monday that European equities began the week on a broadly positive footing, though a fresh EU auto tariff threat from Washington kept investor nerves on edge.

The pan-European Stoxx 600 edged 0.1% higher just after 8 a.m. London time. Germany’s DAX added 0.1% and Italy’s FTSE MIB outperformed with a 0.4% gain. France’s CAC 40 dipped marginally into the red. The U.K.’s FTSE 100 was closed for the early spring bank holiday.

Auto Sector Bears the Brunt of Fresh EU Auto Tariff Warning

President Donald Trump said Friday he would lift tariffs on European cars and trucks to 25%, rattling the continent’s automakers at the open. The European Commission said it was weighing its response options but stopped short of announcing countermeasures.

Auto parts supplier Continental bore the heaviest losses, falling 5.2% to the bottom of the Stoxx 600. Mercedes-Benz shed 1.9% and Volkswagen lost 1.7%. The broader European autos sector slid 1.6% in early trade.

Also Read: What Is a Tariff and How Does It Affect Markets?

Background: Supreme Court Ruling Did Not End the Tariff Fight

The new threat arrives despite a Supreme Court ruling in February that struck down significant portions of Trump’s earlier tariff programme. That decision had offered European exporters temporary relief. Monday’s announcement signals the administration is pursuing fresh legal pathways to reimpose levies on imported vehicles.

The automotive industry had been among the sectors most exposed to the original tariff sweep. Continental, Mercedes-Benz, and Volkswagen all suffered heavy losses during those earlier rounds of trade friction as well.

Also Read: Trump Tariff Timeline: A Full History of the Trade War

Nokia Surges as Telecoms Lead Gainers

Away from autos, the telecoms sector was Monday’s standout performer, advancing 1.2% across the Stoxx 600. Nokia jumped 7% in early trading after U.S. firm Inseego announced late last week it would acquire Nokia’s fixed wireless access business. The move pushed Nokia’s year-to-date gain past 100%.

Hormuz Tensions and Oil Prices Add to the Mix

Geopolitical risk also flickered through markets. Trump unveiled what he called “Project Freedom,” a plan to escort commercial vessels through the Strait of Hormuz using warships, guided missiles, and air support. A vessel was separately reported struck by projectiles near Fujairah in the UAE early Monday.

Oil prices pulled back modestly. Brent crude slipped 0.8% to $107.38 a barrel and West Texas Intermediate fell a similar amount to $101.10, suggesting markets were not yet pricing in a major supply disruption.

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