President Donald Trump has announced an increase in U.S. tariffs on European automobiles, blaming the European Union for failing to fully comply with the 2025 trade deal. The move, which effectively increases duties from 15% to 25%, rekindles trade friction between Washington and Brussels just as global supply chains remain under strain from the prolonged Gulf conflict.
More than 50 European leaders are meeting in Armenia and promised coordinate the bloc’s response. The Eurogroup president said the EU is “ready to respond,” though Brussels has first requested urgent talks with the U.S. to avoid a full‑blown trade confrontation.
Trump also announced that the U.S. Navy will begin escorting commercial vessels through the Strait of Hormuz, a measure aimed at securing global shipping lanes after a series of disruptions. European natural‑gas futures were volatile as traders assessed the risk of further escalation near the world’s key oil chokepoint.
In a significant escalation of its legal countermeasures, China’s Ministry of Commerce has for the first time activated its 2021 Blocking Rules, instructing Chinese companies and individuals not to comply with U.S. sanctions on five independent refineries accused of buying Iranian crude.
Beijing condemned the penalties as an “unjustified and improper” use of extraterritorial law, signaling that China is prepared to broaden its defiance of Washington’s secondary sanctions regime.
In corporate news, UniCredit shareholders approved a new share issue to finance its €34 billion bid for Germany’s Commerzbank, in what would be Europe’s largest cross‑border banking deal in more than a decade.
Global markets, meanwhile, are consolidating after yet another record‑breaking week. U.S. stocks closed at all‑time highs on Friday amid strong corporate earnings and easing oil prices, while chipmakers in Taiwan and South Korea drove Asian benchmarks to fresh records.
Trading turned cautious to start the week. European equities fell about 1%, while in Asia, most markets were closed except for Hong Kong, up 1%. U.S. futures pointed slightly lower ahead of the open. Brent crude rose 4% to $112 a barrel, reversing last week’s dip as traders weighed geopolitics against still‑tight supply.
With Washington hardening its stance on trade and security, and Beijing and Brussels preparing to respond, investors face a familiar mix: record‑high stocks set against the growing sound of global economic division.
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