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European shares held steady on Friday but were on track for a weekly fall as escalating global trade tensions amplified concerns about an economic slowdown.

The pan-European STOXX 600 was up 0.09% as of 0810 GMT.

It ended lower on Thursday after the US president threatened to slap a 200% tariff on wine and other alcohol from the European Union in response to the bloc’s levies on US whiskey.

The benchmark is down over 2% for the week so far. President Donald Trump’s flip-flops on tariffs have roiled global markets, rattling investors and consumers alike.

European shares flat; global trade war looms

BMW fell 3.7% after the carmaker’s net profit slumped by over a third in 2024 to 7.68 billion euros ($8.32 billion).

The index of automakers shed 1.3%, with carmakers Renault falling 1.4%, Volkswagen declining 1% and Stellantis losing 1.2%.

Universal Music Group (UMG) slid 10.5% after Bill Ackman’s Pershing Square cut its stake in the company.

Kering slumped 9.5% after its Italian luxury brand Gucci appointed Georgian designer Demna as its artistic director.

Daimler Truck jumped 4% as the truckmaker forecast its 2025 adjusted operating profit to rise by 5%-15% and launched a cost-cutting programme in Europe after the region underperformed last year.

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