U.S. President Donald Trump arrives for a press briefing at the White House, following the Supreme Court’s ruling that Trump had exceeded his authority when he imposed tariffs, in Washington, D.C., U.S., January 20, 2026.
Elizabeth Frantz | Reuters
LONDON — European stocks closed lower on Monday as global markets reacted to U.S. President Donald Trump’s latest global tariffs policy.
The pan-European Stoxx 600 provisionally closed nearly 0.5% lower with most major bourses in negative territory.
European markets had ended last week higher after the U.S. Supreme Court ruled against a sizeable chunk of Trump’s “reciprocal” tariffs, but the president said over the weekend that he would now introduce a new, blanket 15% global levy, up from 10%.
The new tariffs would be “effective immediately,” Trump said in a Truth Social post. He also warned Saturday that additional levies would follow.
“I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been ‘ripping’ the U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level,” he wrote.
U.K. sports retailer JD Sports was up 3.4% by the end of the trading session after announcing Monday it will return about £200 million ($270 million) to investors through a share buyback program.
Rolls-Royce shares were down 0.2% following reports that the British aerospace and defense multinational is preparing a new £1.5 billion share buyback as part of its annual earnings statement, due on Thursday. A Rolls-Royce spokesperson declined to comment on the matter.
Specialist chemicals producer Johnson Matthey‘s shares collapsed 16.4%, sending it to the bottom of the European index. The company agreed to reduce by a quarter the price of its Catalyst Technologies to £1.3 billion, which is being acquired by Honeywell International.
It’s a quiet start to the new trading week with no earnings expected on Monday. U.K. alcoholic drinks staple Diageo and German sportswear imprint Puma are among the European companies set to publish results later in the week.
On the data front, Germany’s Ifo business climate survey and Italy’s latest inflation data were released.
U.S. stocks fell on Monday as the new tariffs heightened market uncertainty about the outlook for inflation and global growth. Asia-Pacific markets rose overnight despite the tariff uncertainty.