European Markets Stumble as Trump Tariff Fears Escalate

European shares saw declines on Friday, influenced by U.S. President Trump's tariff threats against Mexico, Canada, China, and the European Union. The STOXX 600 index fell by 0.4%, led by basic resources, technology, and luxury stocks. The global trade war's tensions overshadowed earlier weekly gains.

European shares faltered on Friday as fears over new tariffs imposed by U.S. President Donald Trump dampened market sentiment. The pan-European STOXX 600 index dropped 0.4% amid concerns about impending tariffs on goods from Mexico, Canada, and China.

Basic resources stocks were particularly hard-hit, declining by 1.3%, while technology stocks fell by 1.2% following a lackluster performance from Nvidia. Luxury brands connected to China, including LVMH and Christian Dior, also experienced losses.

The potential escalation of tariffs, including a proposed 25% levy on European Union imports, intensified concerns of a global trade war. While the aerospace and defense sector performed well, driven by political developments in Germany, the broader market struggled under tariff fears.

(With inputs from agencies.)