US Imposes 30% Tariffs on EU Imports, European Stocks Fall

European stocks declined following U.S. President Donald Trump's announcement of a 30% tariff on imports from the European Union, effective August 1, escalating fears of a trade war between major global partners. The EU responded by delaying immediate retaliation and expressing readiness to negotiate a trade deal by the deadline while emphasizing protection of its interests, including potential countermeasures. The tariffs particularly impacted the auto sector, with shares of German carmakers like Volkswagen, BMW, and Mercedes-Benz falling sharply. Despite market jitters, some investors remain hopeful that negotiations could lead to a reduced tariff rate or a deal before the deadline, though uncertainty persists. European leaders, including Ursula von der Leyen and Emmanuel Macron, stressed the importance of defending EU interests amid these tensions. The broader market impact was mixed, with defense stocks seeing gains and companies like BASF lowering profit forecasts due to tariff-related demand concerns.