Europe markets close lower amid tariff uncertainty

European markets closed slightly lower on Monday as optimism over the path of U.S. tariffs faded.

Concluding a choppy session, the pan-European Stoxx 600 provisionally ended 0.08% lower, with Germany’s DAX down 0.16%, France’s CAC 40 down 0.26%, and the U.K.’s FTSE 100 down 0.1%.

The travel and leisure sector was up 0.55% after London’s Heathrow Airport reopened on Saturday following a power outage caused by a fire at a nearby electrical substation that disrupted Friday service. British Airways owner IAG was up 0.8%.

Swedish defense firm Saab gained 4.5% after UBS upgraded its stock from neutral to buy, saying the company is “well-positioned for the defence spending upside.”

Global investors in the region are looking ahead to U.S. President Donald Trump’s April 2 tariff deadline.

U.S. stocks made strong gains in early Monday deals. The three major U.S. averages closed higher on Friday, having rallied after Trump told reporters that there could potentially be “flexibility” for his reciprocal tariff plan. 

The Wall Street Journal over the weekend reported the tariffs are expected to be narrower in scope and will likely exclude some industry-specific duties, citing an administration official.

On Monday, Trump announced that the U.S. will impose 25% tariffs on countries that buy oil and gas from Venezuela, with oil prices trading higher.

The president also told reporters at the White House that tariffs on automobiles, aluminum and pharmaceuticals would be announced soon, according to Reuters reporting.