03.04.202515:59:42UTC+00European Stocks Fall Sharply on Trump’s New Tariffs

European stock markets experienced a significant downturn on Thursday following the announcement by Trump of unexpectedly high tariffs. The Stoxx 50 index plummeted by 3.7%, while the broader Stoxx 600 saw a decline of 2.7%. This announcement had a severe impact on companies with international supply chains, with Adidas suffering an 11% drop and shipping giant Maersk experiencing a 9.5% decrease. Auto stocks fell by 3.9% following the implementation of Trump's 25% tariff on imported vehicles, compounding the existing tariffs on steel and aluminum. The banking sector experienced a reduction of 5.6%, and technology stocks fell by 4.5%. Meanwhile, utility stocks, often perceived as a safer investment during market volatility, increased by nearly 3%. Trump's "reciprocal tariffs" strategy includes a 20% tax on EU imports and a 10% tax on UK goods. In reaction to these measures, EU leaders, such as Ursula von der Leyen and Emmanuel Macron, have issued warnings about potential countermeasures and have urged companies to reconsider their investments in the U.S.