European Stocks Rise as EU Announces Retaliatory Tariffs on U.S. Imports

European stock markets opened higher on Wednesday as investors reacted to the European Union’s decision to impose retaliatory tariffs on U.S. imports worth up to €26 billion.

Market sentiment was also boosted by the U.S. decision to resume intelligence sharing and military aid to Ukraine after Kyiv expressed support for a 30-day ceasefire proposal with Russia. The Kremlin has yet to respond officially, though Russian Foreign Minister Sergei Lavrov stated that Moscow would not accept any peace agreement that compromises the safety of its citizens.

European Market Performance

By 05:12 ET (09:12 GMT):

• The Stoxx 600 index rose 0.7% (+4 points).
• Germany’s DAX index climbed 1.4% (+308 points).
• France’s CAC 40 index gained 1.0% (+75 points).
• The UK’s FTSE 100 index edged up 0.4% (+36 points).

Meanwhile, the euro held steady at $1.0923 after reaching a near five-month high against the U.S. dollar earlier in Asian trading. The Russian rouble also strengthened to a seven-month peak.

EU Retaliates Against U.S. Tariffs

President Donald Trump’s expanded tariffs on steel and aluminum officially took effect on Wednesday, adding to trade tensions between the U.S. and its allies.

In response, the European Commission stated that it “regrets” the U.S. decision, warning that these tariffs would “disrupt transatlantic trade,” harm businesses and consumers, and lead to higher prices.

The EU’s two-part countermeasure plan includes:

1. Reinstating previously suspended retaliatory tariffs on U.S. goods starting April 1, targeting €8 billion worth of steel and aluminum exports.
2. Introducing fresh tariffs on U.S. exports next month, in response to new American levies on over €18 billion worth of EU goods.

Corporate Earnings & Market Movers

Investors also focused on corporate earnings, particularly Inditex (BME: ITX), the parent company of Zara. The retailer reported a year-over-year increase in fourth-quarter sales, but issued a warning about weaker demand at the start of the year. As a result, Inditex shares dropped over 6% in Madrid trading.

Oil Prices Recover Amid Market Volatility

In commodities, oil prices rose in European trading, rebounding after earlier losses driven by concerns over U.S. tariffs and slowing global economic growth.

Despite some recovery, market sentiment remains fragile, with investors awaiting key U.S. inflation data and an OPEC monthly report for further insights into global supply and demand conditions.

While oil has shown slight gains this week, tariff-related uncertainties continue to weigh on market outlooks and demand expectations.