European stocks close lower after week of tariffs, rate cuts

By Mucahithan Avcioglu

ISTANBUL (AA) - European stock markets ended the week with losses as US President Trump's implementation of 25% tariffs on imports from Canada and Mexico heightened fears of a global trade war.

Trump on Tuesday also doubled the previously imposed 10% tariffs on China to 20%.

But he later signed an executive order Thursday that delayed the tariffs on Mexican and Canadian goods covered under a free trade agreement for a month.

The European Central Bank on Thursday cut interest rates by 25 basis points, with the key deposit rate standing at 2.50%, its lowest level since early 2023.

This marked the sixth consecutive rate cut since the ECB initiated its easing cycle last June.

The luxury industry is anticipated to encounter difficulties due to US import duties, which may impact customer demand in the US and result in price increases.

As the Stoxx Europe Luxury 10 index fell 2.7%, luxury companies were among the worst, with Richemont and Burberry down more than 3% and over 5.6%, respectively.

The pan-European Stoxx 600 fell 0.46% or 2.55 points to 553.35.

Germany's DAX 40 index dove 1.75%, or 410.54 points, to 23,008.94.

France's CAC 40 also fell 0.94%, or 76.87 points, to 8,120.8, and Italy's FTSE MIB 30 index declined 0.48% to 38,592.81 in a 186.86-point fall.

Meanwhile, Britain's FTSE 100 index was flat, slightly falling 2.96 points to close at 8,679.88.