Amsterdam stock market tumbles as E.U. readies retaliatory tariffs on U.S. goods
The stock markets in the Netherlands and other European countries again opened in the negative on Wednesday, continuing the negative mood of the Asian stock markets after Donald Trump’s import tariffs of 104 percent on Chinese goods took effect. European Union officials are meeting on Wednesday to finalize retaliatory measures against the United States for previous import tariffs imposed on aluminium and steel. It is not yet clear how the EU will respond to these latest levy hikes.
After the ceremonial gong was sounded to start the trading day, the AEX-Index in Amsterdam opened with a drop of nearly 2.6 percent. At 9:50 a.m., the index of the top publicly-traded companies in the Netherlands stood at 805.70, a mark which was 18.19 points lower than when the markets closed on Tuesday.
The AMX Index of mid-market stocks was also trading at around 15 points lower to dip below 760.00, off 2 percent from Tuesday’s close. The AEX All-Share Index was also about 2 percent lower during the first hour of trading.
BE Semiconductor was the worst performer on the AEX Index during the first hour of trading, falling 4.31 percent to 82.14. Philips was also off nearly 4 percent, and both Shell and ASM International tumbled more than 3 percent. ASML was also down more than 2.5 percent in heavy trading.
Stock traders and analysts expect further unrest on the financial markets. The high import duties will increase prices in the shops, leading to less consumer spending and slowed economic growth. The extent to which this happens will depend on how much Trump sticks to his guns. According to NOS, Trump’s staff reported that the White House is open to negotiations with traditional allies like Japan and South Korea, but China can forget about lower tariffs. They didn’t mention the EU.
Later on Wednesday, the European Commission will finalize and announce how it will retaliate against the previous American levies on European steel and aluminium, among other things. Last month, the Commission said it planned to implement tariff hikes that would apply to up to 26 billion euros in American goods exports.
It is not yet clear whether Trump’s latest tariff hikes will result in more retaliatory levies from the EU. On Monday, European Commission President Ursula von der Leyen said Europe would first try diplomacy. “We stand ready to negotiate with the U.S. Indeed, we have offered zero-for-zero tariffs on industrial goods as we have successfully done with other trading partners,” she said. “Europe is always open for a good deal. So we keep it on the table. But we are also prepared to respond through countermeasures and defend our interests.”
Von der Leyen hosted meetings with the pharmaceutical and automotive sectors yesterday. The latter included participation by Italian automaker Stellantis, which is officially headquartered in the Netherlands.
“Participants voiced strong concerns about the broader implications of the US tariffs, particularly the risk of trade diversion,” the European Commission’s press office stated about the auto industry meeting. “They expressed support for lowering tariffs on both sides as part of a negotiated solution, a path the European Commission remains committed to. Participants also shared perspectives on the potential for the EU and US to reduce non-tariff barriers in a mutually beneficial way.”
