Stocks are down after Trump threatens tariffs on EU helicopters, ski-suits, cheeses and wines

  • European stocks and US futures are down after the Trump administration threatened to impose tariffs on $11 billion in EU imports.
  • The White House said the tariffs are a response to EU subsidies for Airbus, the archrival of troubled US aircraft maker Boeing.
  • An ECB policy meeting, an EU summit on Brexit, and the US Federal Reserve's release of the minutes from its March meeting are all scheduled for Wednesday.

American and European investors took cover after the Trump administration threatened to impose tariffs on $11 billion in imports from the European Union, worsening an already tense backdrop for global trade.

The White House justified its decision to target products such as passenger helicopters, ski-suits, and various cheeses and wines by pointing to EU subsidies for Airbus, according to Bloomberg. The European aircraft maker is the archrival of US manufacturer Boeing, which continues to weather the fallout from two lethal plane crashes in less than five months.

A fresh batch of US tariffs could spark a multinational trade war. "Whilst at present it looks like a relatively contained problem...there is a risk of contagion if the EU decides to respond in kind," said Neil Wilson, chief market analyst for Markets.com. 

"Moreover, it will not do anything to improve business sentiment in the Eurozone, and we must assume that the [European Central Bank] will take a rather dim view of the situation with regards to the growth outlook."

An ECB policy meeting, an EU summit on Brexit, and the US Federal Reserve's release of the minutes from its March meeting are all scheduled for Wednesday.

"Investors are waiting cautiously on the sidelines, braced for key events lined up for later in the week," said Jasper Lawler, head of research at London Capital Group.

Here's the market roundup as of 9.20 a.m. (5.20 a.m. ET):

European markets opened flat with Germany's DAX down 0.2% with a mixed picture from Europe's other markets while Italy's FTSE MIB is up 0.3%. 

US stocks are set to open lower with Dow 30, S&P 500 and Nasdaq futures all down by more than 0.1%.

Asian stocks were broadly higher, with the SZSE Component and China A50 up 0.8%, Hong Kong's Hang Seng index up 0.3%, and Japan's Nikkei up 0.2%, although the Shanghai Composite closed down 0.2%.

Oil continued its recent good run with West Texas Intermediate (WTI) up 0.3% and Brent Crude up 0.2%. 

See Also:

The 10 Most Overlooked Tax Deductions

Don't overpay taxes by overlooking these tax deductions. See the 10 most common deductions taxpayers miss on their tax returns so you can keep more money in your pocket.

Read More

Brought to you by TurboTax.com

How to Find a Good CPA for Your Taxes

Finding a good CPA for your taxes is simple with these seven tips: 1. Ask about their specialization; 2. Verify their identification number, 3. Look up their license, 4. Consider their experience, 5. Confirm their willingness to sign, 6. Ask for advice, and 7. Determine their fees.

Read More

Brought to you by TurboTax.com

Reporting Self-Employment Business Income and Deductions

Self-employed taxpayers report their business income and expenses on Schedule C. TurboTax can help make the job easier.

Read More

Brought to you by TurboTax.com

2018 Tax Reform Impact: What You Should Know

Congress has passed the largest piece of tax reform legislation in more than three decades. The bill went into place on January 1, 2018, which means that it will affect the taxes of most taxpayers for the 2018 tax year.

Read More

Brought to you by TurboTax.com
Read Full Story
Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.