European Markets Wobble as Trump Threatens New Tariffs

European stocks faced volatility on Thursday after U.S. President Donald Trump proposed new tariffs on EU alcoholic products, escalating trade tensions. While healthcare stocks rose, spirits and automotive shares declined. Analysts fear these developments could impact economic growth amid a complex global trade landscape.

European markets experienced turbulence on Thursday, as early gains were offset following a threat from U.S. President Donald Trump to impose steep tariffs on European alcoholic imports. The STOXX 600 index briefly rose but stabilized at a modest uptick by midday.

The proposed 200% tariff on EU wines and spirits sparked declines in major stocks like Pernod Ricard and Campari. This tariff proposal aims to target European tariffs on U.S. whiskey, reflecting Trump's strategy to apply pressure in global trade negotiations.

Meanwhile, Trump's trade assertions overshadowed promising developments, such as a potential ceasefire in Ukraine and lower-than-anticipated U.S. inflation. Global markets remain jittery as trade tensions escalate, while European truck manufacturers took a hit following regulatory changes initiated by the U.S. government.

(With inputs from agencies.)