European stocks opened Monday on shaky footing, weighed down by fresh tariff bombshells over the weekend. Yet the FTSE 100 managed a modest 0.2% gain to 8,955.66, outperforming its peers as investors sought shelter in miners, healthcare, and utilities.
The latest twist in the ongoing trade tensions came from President Donald Trump, who announced via his Truth Social platform that major US trading partners Mexico and the EU face a hefty 30% tariff starting August 1. The move ratchets up the pressure on stalled trade negotiations, citing Mexico’s role in illicit drugs entering the US and a significant trade imbalance with the EU.
The FTSE 250 slipped 0.1% to 21,583.90, while the AIM All-Share eked out a slight 0.1% rise to 774.41.
Miners found support following upbeat export data from China, a key mineral buyer, with Glencore and Rio Tinto both gaining 1.3%. AstraZeneca advanced 1.8% amid steady healthcare demand, while United Utilities added 0.6%. Gold prices rose alongside investor nerves, pushing Fresnillo up 2.6%.
Trump’s latest tariff barrage adds to an erratic pattern of trade threats since his return to the White House in January. His letter to the EU warned of a baseline 30% tariff from August 1, with the possibility of additional sector-specific duties if the EU retaliates. Although negotiations continue, this escalation marks a tougher stance than expected, raising the spectre of a no-deal scenario for both sides.
While many still expect a more moderate 10% tariff rate as the final compromise, risk now skews heavily toward steeper levies.
On the corporate front, Filtronic shares rose 2.1% after announcing a £13.4 million contract to supply high-performance modules for an electronic sensor system. Delivery is slated to begin mid-2026, with production and testing taking place at its new advanced microelectronics facility in Sedgefield, County Durham.