GREENBRAE, CALIFORNIA – MARCH 13: Bottles of French wine are displayed on a shelf at a BevMo store on March 13, 2025 in Greenbrae, California. U.S. President Donald Trump is threatening a 200 percent tariff on alcohol from European Union countries.
Justin Sullivan | Getty Images News | Getty Images
LONDON — European stocks sold off on Tuesday as the specter of fresh trade tariffs lingers, hurting market sentiment.
The pan-European Stoxx 600 was 0.7% lower shortly after the opening bell, with all sectors and major regional bourses in negative territory.
The market slump comes after Trump announced on Saturday that eight European allies would face increasing tariffs, starting at 10% on Feb. 1 and rising to 25% on June 1, if a deal is not reached that allows Washington to “buy” Greenland, a semi-autonomous territory that’s part of Denmark.
The proposed tariffs would target Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands, and Finland, Trump said. European leaders have hit back against the tariffs and have called for more dialogue with the U.S.
On Tuesday, Trump also threatened to slap 200% tariffs on French wine and champagne after France’s President Emmanuel Macron was reported to be unwilling to join his “Board of Peace” on Gaza.
Paris-listed shares of luxury giant LVMH — which owns Moët & Chandon, Dom Pérignon and Veuve Clicquot — was 1.7% lower in early trade, while French drinks giant Remy Cointreau — maker of Telmont champagne — lost 2%.
European leaders have described Trump’s fresh tariff threats as “unacceptable,” and are reportedly considering countermeasures — with France said to be pushing for the European Union to use its strongest economic counter-threat, known as the “Anti-Coercion Instrument.”
Focus on Tuesday will turn to the World Economic Forum in Davos, Switzerland. The forum steps up a gear today with key speeches from high-profile delegates, including European Commission President Ursula von der Leyen, Vice Premier of China He Lifeng, and French President Emmanuel Macron. Trump is due to address the forum on Wednesday.
