European shares fall as U.S. core inflation rises more than expected; tariffs remain in focus

European stock markets traded lower on Friday, as global investors digested new tariff announcements from the Trump administration and weighed fresh economic data out of the United States.

The pan-European Stoxx 600 was 0.8% lower by 2:10 p.m. in London. The U.K.’s FTSE 100 was 0.1% lower, while France’s CAC 40 and the German Dax were both down around 1%.

Investors were reacting to the U.S. core personal consumption expenditures price index — the Federal Reserve’s preferred inflation measure — which rose more than expected on Friday, according to an update released Friday. It put the core annual inflation rate at a hotter-than-expected 2.8%.

European shares deepened their losses following the data release, while U.S. stocks tumbled in early deals.

U.S. President Donald Trump’s new tariffs on foreign automakers are also still weighing on sentiment. On Wednesday, the president announced 25% duties on all cars “not made in the United States,” with the levies set to go into effect from April 2.

He later threatened to impose “far larger” tariffs on the European Union and Canada if they worked together to combat duties from the U.S.

Back in Europe, inflation data from Spain and France came in lower than expected. French inflation came in at 0.9% in March, steady from February but below the 1.1% forecast by Reuters. Spain’s annual inflation figure, meanwhile, dropped to 2.2% in March, compared with 2.9% in February.

In corporate news, shares of French video game publisher Ubisoft reversed course to trade 5.7% lower after Chinese tech giant Tencent announced it would take a $1.25 billion stake in a new subsidiary focusing on Ubisoft’s gaming brands Assassin’s Creed, Far Cry and Tom Clancy’s Rainbow Six.

Asia-Pacific markets mostly fell on Friday as tariff threats kept investors on edge.

— CNBC’s Jeff Cox contributed to this report.