European Stocks Open Lower Amid U.S. Tariff Fears and Political Uncertainty

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: Brendan McDermid | Reuters

European stocks opened slightly lower on Tuesday as investors monitored U.S. trade developments and ongoing political deadlock in Washington. The pan-European Stoxx 600 index fell 0.2% shortly after the opening bell, with most sectors and major bourses trading in negative territory.

Among individual stocks, Danish jewelry company Pandora dropped 3.5%, hitting the bottom of the Stoxx 600 after announcing that CEO Alexander Lacik will retire in March. Chief Marketing Officer Berta de Pablos-Barbier, a former LVMH executive, is set to succeed him.

Markets remain sensitive to U.S. President Donald Trump’s recent trade measures. On Monday, Trump announced a 10% tariff on imported timber and lumber, as well as an initial 25% duty on kitchen cabinets, bathroom vanities, and upholstered furniture, citing threats to the U.S. economy and national security. Investors are closely watching how these tariffs may impact global supply chains and corporate earnings.

Political uncertainty in the U.S. also weighed on markets. Discussions at the White House between Trump and congressional leaders failed to resolve budget disagreements, raising concerns about a potential federal government shutdown. While shutdowns historically have limited market impact, analysts caution that current economic vulnerabilities including a slowing labor market, stagflation risks, and high stock valuations could amplify market reactions.

In the U.K., the Labour Party’s annual conference continues in Liverpool, with Prime Minister Keir Starmer scheduled to address delegates. Finance Minister Rachel Reeves’ speech Monday offered limited guidance on upcoming tax measures for the Autumn Budget, leaving investors awaiting further policy signals.

Across the globe, Asia-Pacific markets traded mixed after official Chinese data indicated a sixth consecutive month of manufacturing contraction. Meanwhile, U.S. stock futures were largely unchanged as investors looked to extend gains following a strong September performance.

Analysts note that geopolitical developments and economic indicators this week will be closely monitored, with the potential to influence investor sentiment across global markets.