European markets are set to open lower Monday after President Trump announced new tariffs against China.

The FTSE 100 is seen off by 3 points at 7,642; the DAX is expected to start lower by 28 points at 12,996 and the CAC 40 is seen down by 18 points at 5,494; according to IG.

Market sentiment is being dominated by trade tensions between the U.S. and China with new tariffs on the table. More than 800 Chinese goods are due to get an extra 25 percent tariff starting on July 6. As a result, China has responded with a 25 percent tariff that will also be applied to certain U.S products starting on the same day.

In the U.K., new forecasts from the British Chamber of Commerce showed Monday that the economy is on track to grow at its weakest rate since 2009, Reuters reported. This is due to the decision to leave the European Union, higher oil prices and concerns over a trade war.

In terms of data, the calendar is thin with only Italian balance trade numbers due at 9 a.m. London time.

And in terms of events, European central bankers are due to meet in Sintra, Portugal, for the European Central Bank Forum, where President Draghi is due to speak.