Renewed U.S. Tariff Tensions Drag Down European Markets

Bridgette Randall
11 Jul, 2025
London

European markets faced headwinds amid renewed tariff threats, and investors reviewed the latest corporate results. 

Benchmark indexes in Frankfurt, Milan, Paris, and London dropped between 0.5% and 1.0% amid worries that the volatile U.S. trade policy is likely to negatively impact corporate results. 

The U.S. president threatened tariff rates of 25% on Japan and 35% on Canada and suggested blanket tariffs between 15% and 20% on imports from most trading partners. 

The erratic and arbitrary tariffs announced by the White House lacked details about the implementation plan from August 1.

The chaotic U.S. trade policy has forced businesses to forego investment plans and energized nations to strike non-U.S. trade deals.

 

Europe Stock Movers 

BP plc increased 2.4% to 398.06 pence, despite the UK-based energy company estimating weaker prices for oil and gas in the second quarter compared to the previous quarter. 

Crude oil revenues are likely to fall between $0.6 billion and $0.8 billion, and natural gas revenues are likely to shrink between $0.1 billion and $0.3 billion, according to a trading update released by the company. 

However, upstream production is likely to be "higher than previously estimated" in the second quarter for the oil segment and "slightly higher" in the natural gas and low-carbon energy segment. 

The company added that the Brent crude price averaged $67.88 per barrel in the second quarter compared to $75.73 in the first quarter. 

US gas Henry Hub first-of-month index averaged $3.44/mmBtu in the second quarter compared to $3.65/mmBtu in the first quarter.

BP guided the average refining margin in the second quarter to expand to $21.10 per barrel from $15.2 a barrel in the previous quarter. 

Brunello Cucinelli SpA decreased 1.9% to €107.15 after the Italian luxury fashion company reported revenue in the first half increased in double digits. 

The fashion company's revenue in the first half increased 10.7%, driven by an increase of 8.7% in the Americas, 10% in Europe, and 12.5% in Asia. 

Revenue in the first half rose to €684.1 million from €620.7 million in the year ago. 

Turnover in Europe advanced 10% to €243.1 million and accounted for 35.5% of total sales; in the Americas, it advanced 8.7% to €245.2 million, or 35.9% of total sales; and in Asia, it advanced 12.5% to €195.7 million, or 28.7% of total sales.