European Stocks Fall Amid China Duties, US Tariff Uncertainty

European stock markets opened lower amid growing investor caution driven by trade tensions and tariff uncertainties. The Stoxx 600 index fell approximately 0.4% to 0.5%, with major indices such as the UK's FTSE 100, France's CAC 40, and Germany's DAX all declining. The downturn was partly triggered by China imposing tariffs of up to 34.9% on European Union brandy following an anti-dumping investigation, which particularly impacted French luxury and drinks companies like Pernod Ricard, Remy Cointreau, and LVMH. Additionally, the markets are reacting to the approaching July 9 deadline set by President Donald Trump for U.S. tariff negotiations, which could result in increased duties on exports from key partners unless a comprehensive trade deal is reached; the EU has indicated that while a framework agreement is close, a full deal by the deadline is unlikely. Corporate news included Air France-KLM's announcement to acquire a majority stake in Scandinavian Airlines (SAS), influencing SAS's stock negatively. Overall, the combination of geopolitical trade issues and pending U.S. tariff decisions is weighing on European equities.