European shares flat as investors assess new US tariff proposals

European shares were muted on Tuesday as investors assessed US President Donald Trump’s new tariff proposals for a spate of countries.

The pan-European STOXX 600 index was flat at 543.22 points, as of 0710 GMT.

On Monday, Trump sent letters to 14 countries, including Japan and South Korea, unveiling sharply higher tariffs on imports into the US, to come into effect on August 1.

A July 9 deadline to secure trade deals with the US was reset to August 1, but Trump said that the deadline was not 100% firm and he would consider extensions if countries made proposals.

The European Union will not receive a letter from the US setting out higher tariffs, EU sources said on Monday, and the bloc is eyeing possible exemptions from the US baseline levy of 10%. European real estate shares fell 0.6%, while basic resources were up 0.7%.

Belgian biotech firm ArgenX gained 1.4% after Deutsche Bank upgraded its stock to “buy” from “hold”.

On the data front, German exports fell more than expected in May as demand from the US decreased for the second consecutive month following a period of strong purchases in anticipation of US tariffs.