FX.co ★ European Markets Fall on Trump’s Auto Tariffs

On Thursday, European stocks experienced a downturn as investors responded to the latest automotive tariffs announced by Trump, which have heightened worries about escalating trade tensions and possible retaliatory measures. The Stoxx 50 index fell by 0.8%, and the Stoxx 600 saw a decrease of 0.5%, primarily driven by a 1.1% decline in the automotive sector. Stellantis faced a significant drop of 4.6%, with Mercedes-Benz and BMW also facing challenges. Trump's announcement included a 25% tariff on all foreign-manufactured cars and light trucks, scheduled to be implemented on April 2. He further cautioned that even steeper tariffs may be imposed on the European Union and Canada should they take actions perceived to be detrimental to the United States. European Commission President Ursula von der Leyen expressed her disappointment, affirming the EU’s commitment to pursuing a diplomatic solution while safeguarding its economic interests.