European markets edged higher on Tuesday as investors reacted to the latest U.S. trade measures. The pan-European STOXX Europe 600 rose about 0.1% by midday in London, recovering from earlier losses after confirmation that President Donald Trump’s new import tariffs would take effect at 10% instead of the previously announced 15%, easing some immediate concerns about global trade disruptions.
Trading across the continent was mixed. France’s CAC 40 stayed nearly flat, while Germany’s DAX and the U.K.’s FTSE 100 slipped slightly. Italy’s FTSE MIB and Spain’s IBEX 35 also posted modest declines, reflecting cautious investor sentiment amid uncertainty over how the U.S. tariffs might affect European exporters in the coming months.
The tariff announcement had initially sparked confusion. Trump had signaled a 15% global import levy, but a U.S. Customs and Border Protection memo clarified that the Temporary Section 122 Duties would impose a 10% ad valorem duty on imports for 150 days unless specific exemptions applied. This discrepancy highlighted the complexities of the new trade policy and contributed to early-week market volatility.
Corporate earnings added another layer to market sentiment. Shares of Standard Chartered fell nearly 3% after reporting full-year pre-tax profits of $6.96 billion, up 16% from 2025 but below analyst expectations. While net interest income exceeded forecasts, the bank cautioned that 2026 operating income would likely land at the lower end of its projected 5%-7% growth range, reinforcing investor caution amid ongoing trade uncertainties.
