European shares dip as Trump widens trade war, EU tariffs in focus

European shares dipped on Friday as the U.S. president broadened his trade war on countries including Canada, while investors awaited word on tariffs for the European Union.

The pan-European STOXX 600 index SXXP was down 0.4% at 550.96 points, as of 0708 GMT, but was on track to log a weekly gain. Other major regional indexes also traded lower.

Donald Trump on Thursday said the European Union could receive a letter on tariff rates by Friday, throwing into question the progress of trade talks between Washington and the bloc.

He also announced a 35% tariff rate on all imports from Canada from August 1 and floated a blanket 15% or 20% tariff rate on other countries, up from the current 10% baseline rate.

Trump has broadened his trade war in recent days, setting new tariffs on a number of countries along with a 50% tariff on copper.

Among sectors, European personal and household goods (.SXQP) fell 1%, while healthcare stocks (.SXDP) declined 0.7%. Defence stocks (.SXPARO) were up 0.6%.

In company news, BP's BP. second-quarter results are expected to be impacted by lower prices received for gas and oil, while its upstream output is set to be higher than previously forecast, the company said in a trading update. Shares of the British oil company rose 1.3%.

On the data front, Britain's economy contracted unexpectedly for a second month running in May.