European stock indexes dropped after US President Donald Trump expanded the trade war by imposing new tariffs not only on Canada but also on a number of other countries. Investors are eagerly awaiting a decision on tariffs against the European Union, Reuters reports.

The pan-European STOXX 600 index fell 0.4% to 550.96 points at 07:08 GMT, but still has a chance of ending the week higher. Other key regional indices are also trading lower.

On Thursday, Trump said that by Friday, the European Union could receive an official letter with information about new tariffs, which casts doubt on the prospects for trade negotiations between Washington and Brussels. In addition, from August 1, the US will impose a 35% tariff on all imports from Canada. For other countries, the introduction of a universal rate of 15-20% is being discussed, which is significantly higher than the current 10%.

In recent days, Trump has expanded trade restrictions by introducing new tariffs for a number of countries, as well as a 50% duty on copper.

In terms of sectors, European companies producing consumer goods and household products fell by 1%, while healthcare stocks fell by 0.7%. At the same time, defense stocks rose by 0.6%.

In corporate news, British oil company BP said its second-quarter results could suffer from lower gas and oil prices, although production would exceed previous forecasts. BP shares rose 1.3%.

In terms of economic statistics, Britain unexpectedly reported a decline in GDP for the second month in a row in May.

Meanwhile, US stock markets rose on Thursday: the Dow Jones index gained more than 0.4%, the S&P 500 rose more than 0.25%, and the Nasdaq showed slight growth.