US and European stocks fell Monday as President Donald Trump’s new global tariff hike triggered a fresh wave of market turmoil.
“Uncertainty is back,” one banker told the Financial Times, noting that the risk of escalation between Washington and its trading partners is higher than it was a year ago.
The US Supreme Court’s ruling invalidating most of Trump’s tariffs — which he responded to by imposing a blanket 15% duty — threw global trade agreements into flux.
The European Parliament on Monday said it paused ratification of the US-EU pact. The feeling is reminiscent of early 2025, when Trump’s tariff policies “seemed to switch on a moment’s notice,” Reuters noted. For companies, “it’s impossible to plan,” EY-Parthenon’s chief economist said.