European stocks plunge due to Trump’s tariffs
European stock markets experienced a significant decline on Monday morning, as a global selloff continued following new tariffs announced by US President Donald Trump, which had already unsettled Asian markets. The pan-European Stoxx 600 index,...

The pan-European Stoxx 600 index, which tracks leading companies across the region, fell over 6% shortly after the market opened, reaching its lowest level in 16 months – since December 2023. Germany’s DAX index dropped nearly 10%, while France’s CAC 40 fell 6.6%, and Italy’s FTSE MIB decreased by 5.7%.
In London, the FTSE 100 index of major companies declined by 6%, marking the worst day for the index since the early days of the Covid-19 pandemic in 2020. With one hour after the market opening, all stocks in the index were in the red.
The decline was led by shares in defense firms and banks, with German arms manufacturer Rheinmetall plunging almost 24%, and UK-based Rolls-Royce losing 12%. Mining and investment companies also faced significant losses.
This selloff was triggered by Trump’s announcement on April 2 of a 10% baseline tariff on all imports and additional "reciprocal" duties aimed at several countries he deemed to have unfair trade practices. In retaliation, China imposed a 34% tariff on US goods, and various other countries condemned the tariffs, indicating they would pursue countermeasures. The EU, facing a 20% tariff under Trump’s directive, is set to initiate discussions with Washington later this week. European Commission President Ursula von der Leyen cautioned that if negotiations falter, the EU would respond with unified retaliatory measures.
Trump, in defense of the tariffs, stated on Sunday that they are essential for addressing trade deficits with China, the EU, and other countries.
Market analysts have warned of ongoing volatility as investors await potential reversals in Trump’s tariff policies.
“This market is looking for concrete action, not talk of action,” Kathleen Brooks, research director at XTB, wrote in a note to The Guardian. “The best panacea for financial markets right now would be a pause or reversal from the US on its tariff program.”
UBS Global Wealth Management chief economist Paul Donovan remarked, “Over the weekend, US administration officials gave contradictory statements on trade taxes, causing investors to question the existence of a master plan… If the competence of policymaking is questioned, markets will worry that economic damage will be lasting.”
Asian markets also posted steep declines on Monday, with Japan’s Nikkei 225 dropping to its lowest point since October 2023, and indexes in China, Taiwan, South Korea, and Australia all showing losses. US futures indicated further declines after last week's sharp downturn, which saw the S&P 500, Dow, and Nasdaq experience their worst results since the crash at the onset of the pandemic in 2020.
James del Carmen contributed to this article for TROIB News
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