Shafaq News/ On Monday, European stock markets declined asinvestors awaited the implementation of new US tariffs.
European stock markets tumbled as investors braced for theimplementation of US President Donald Trump’s new tariffs, set to take effecton 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% and1.4%, respectively.
The sell-off was driven by concerns over Trump’s 25% tariffon imported vehicles manufactured outside the US, which has rattled theEuropean 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 aresult.
Shares of French gaming company Ubisoft plummeted 15%following news of a planned spin-off of its top franchises, with Tencent takinga minority stake. Meanwhile, Danish pharmaceutical giant Novo Nordisk urgedcaution regarding speculation over Trump’s trade measures, as the company facespotential disruptions to its US market for obesity and diabetes drugs.
Trump, who has dubbed April 2 “Liberation Day,” is alsoexpected to announce further reciprocal tariffs. Over the weekend, reportsemerged that he had urged his advisors to adopt a more aggressive stance ontrade policies. In an interview, Trump dismissed concerns that his tariffswould lead to higher car prices, stating he “couldn’t care less.”
Yesterday, German Chancellor Olaf Scholz said that Europewould respond collectively if the United States reintroduces tariffs on steeland aluminum.
Trump’s administration had announced earlier tariffs on countriespurchasing oil or gas from Venezuela, as well as on Canadian and Mexican goods.