European markets sink as Trump’s tariffs loom

Shafaq News/ On Monday, European stock markets declined as investors awaited the implementation of new US tariffs.

European stock markets tumbled as investors braced for the implementation of US President Donald Trump’s new tariffs, set to take effect on April 2. The regional Stoxx 600 index dropped 1.72% by midday in London, with all major European indices in the red. Germany’s DAX led the losses, falling 1.8%, while France’s CAC 40 and the UK’s FTSE 100 declined 1.9% and 1.4%, respectively.

The sell-off was driven by concerns over Trump’s 25% tariff on imported vehicles manufactured outside the US, which has rattled the European auto sector. Volkswagen shares slumped 4%, Mercedes-Benz lost 3.3%, and Renault declined 2.7%. The European Automobile and Parts index fell 3% as a result.

Shares of French gaming company Ubisoft plummeted 15% following news of a planned spin-off of its top franchises, with Tencent taking a minority stake. Meanwhile, Danish pharmaceutical giant Novo Nordisk urged caution regarding speculation over Trump’s trade measures, as the company faces potential disruptions to its US market for obesity and diabetes drugs.

Trump, who has dubbed April 2 “Liberation Day,” is also expected to announce further reciprocal tariffs. Over the weekend, reports emerged that he had urged his advisors to adopt a more aggressive stance on trade policies. In an interview, Trump dismissed concerns that his tariffs would lead to higher car prices, stating he “couldn’t care less.”

Yesterday, German Chancellor Olaf Scholz said that Europe would respond collectively if the United States reintroduces tariffs on steel and aluminum.

Trump’s administration had announced earlier tariffs on countries purchasing oil or gas from Venezuela, as well as on Canadian and Mexican goods.