European stocks edge lower with Trump’s EU tariff threats, UK election in focus

European equity markets were broadly lower on Friday, after U.S. President Donald Trump threatened “much higher” tariffs against the EU.

The pan-European Stoxx 600 was more than 0.5% lower by 1:40 p.m. in London (8:40 a.m. E.T.) with most sectors and major regional bourses in negative territory.

In a Truth Social post on Thursday evening, Trump said he had been “waiting patiently for the EU to fulfill their side of the Historic Trade Deal” that was agreed last July, when the U.S. and the EU reached a deal to lower tariffs on the European trading bloc from a threatened 30% to 15%.

In Thursday’s post, Trump said the EU had promised to “deliver their side of the deal” and cut their tariffs on American goods to zero.

“I agreed to give her until our Country’s 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels,” he said of a call with EU Commission President Ursula von der Leyen.

In February, after Trump said he would impose a global blanket tariff of 15% after the Supreme Court struck down his reciprocal tariffs regime, a top EU trade lawmaker told CNBC the U.S. had breached the terms of the deal “several times.”

Lawmakers in Brussels paused a parliamentary vote on the trade deal following those threats from Trump, with one official lambasting the president’s move as “pure tariff chaos.”

Commerzbank was 0.9% lower after the German bank reported a 1.36 billion euro ($1.6 billion) operating profit in the first quarter.

CEO Bettina Orlopp told CNBC that Commerzbank would defend shareholders’ interests as the bank continues to fight a takeover bid by Italian rival UniCredit. UniCredit was last seen 1.4% lower.

European defense stocks also traded lower as traders assessed events in the Middle East, where both sides trading fire overnight. In a phone call with a reporter at ABC News, Trump said the strikes were “just a love tap” and insisted the fragile ceasefire between the two sides was still in effect.

Shares in German defense giant Rheinmetall fell 7.5%, while tank parts maker Renk slipped 5.3%. Italian defense mainstay Leonardo dropped 2.9%

Elsewhere, the U.K. is counting votes from local council elections. Early results show losses for the governing Labour party and its main opposition, the Conservative Party. Right-wing party Reform UK and the left-wing Green party are widely expected to make gains.