European markets ended lower on Thursday as trade concerns resurfaced following comments from former U.S. President Donald Trump about potential tariffs on European alcoholic beverages.
Shares of wine and spirits companies, including Pernod Ricard, Rémy Cointreau, and Davide Campari, declined by more than 3% after Trump suggested imposing a 200% tariff on wines, champagnes, and other alcoholic products from France and the European Union. His remarks were in response to the EU’s recent 50% tariff on U.S. whiskey imports.
Other companies in the sector also saw movement, with Diageo, the owner of brands such as Johnnie Walker and Guinness, edging down 0.2%. Meanwhile, luxury goods conglomerate LVMH, which owns Moët & Chandon and Hennessy, closed 1.1% lower.
The pan-European Stoxx 600 index declined by 0.15% at market close. The automotive sector led losses, dropping 1.7%, as investors assessed the potential impact of tariffs between the U.S., the EU, and other trade partners.
Among gainers, pharmaceutical company Novo Nordisk rose 4%, rebounding from earlier losses tied to weight-loss drug trial results. Analysts at Kepler Cheuvreux upgraded the stock from “hold” to “buy,” citing anticipated higher sales of the company’s Wegovy treatment.
The Stoxx 600 had previously ended a four-day losing streak on Wednesday, supported by optimism about a potential ceasefire in the Ukraine-Russia conflict and lower-than-expected U.S. inflation data. While inflation figures provided reassurance to investors amid recession concerns, analysts have noted that increased tariffs could lead to higher consumer prices.
Meanwhile, U.S. markets opened lower on Thursday as trade-related uncertainties continued.
The day also marked the conclusion of CNBC’s CONVERGE LIVE event in Singapore, where business leaders, investors, and policymakers discussed global trade developments.
Explore top supply chain news stories at The Supply Chain Report. Visit ADAMftd.com for free international trade tools.
#EuropeanMarkets #USTariffs #AlcoholIndustry #TradeTensions #MarketDecline #GlobalTrade #TariffImpact
