European stock indices dipped 2.3% on January 18, 2026, following the announcement of new US tariffs on steel and aluminum imports from the EU. Strategists predict the impact will be short-lived, with gains expected within two weeks as markets reassess trade policy risks.
- Euro Stoxx 50 dropped 2.3% on January 18, 2026, amid new US tariffs on EU steel and aluminum.
- Tariff rates include 15% on steel and 10% on aluminum imports from the EU.
- Analysts project recovery within two weeks as markets reassess trade policy risks.
- Industrial sector stocks saw the steepest decline, with Siemens and ArcelorMittal down over 4%.
- EU officials signaled potential retaliatory measures, but no immediate action has been taken.
- Market volatility index (VIX Europe) spiked to 24.1, indicating elevated risk sentiment.
European equities experienced a sharp correction on January 18, 2026, with the Euro Stoxx 50 falling 2.3% after the US government announced targeted tariffs of 15% on imported steel and 10% on aluminum from European Union member states. The move, tied to national security provisions under Section 232 of the Trade Expansion Act, triggered immediate market volatility, particularly affecting industrial and materials-heavy sectors.
The information presented is based on publicly available market data and analyst commentary, with no reliance on proprietary or third-party data sources.