European Markets React to US Tariffs on Foreign Cars

European stock markets experienced a downturn at the opening on Thursday, following the announcement of new trade tensions. US President Donald Trump has decided to impose a 25% tariff on all foreign-made cars, effective from April 2. This decision, signed into law on Wednesday, has raised concerns among investors and could escalate existing trade disputes.

Trump's Warning to Canada and the EU

Alongside the new tariffs, President Trump has issued warnings to Canada and the EU against any form of economic retaliation. He has threatened to impose even steeper duties if these countries act against Washington's interests, further intensifying the trade tensions.

Market Performance in Detail

At 9:00 am CET, the French CAC 40 was down by 0.38%, while the Euro Stoxx 50 saw a decrease of 0.91%. The British FTSE 100 fell by 0.52%, and the German DAX experienced the most significant drop, losing 1.22%. Meanwhile, the euro and pound sterling saw slight gains against the US dollar, trading at $1.07668 and $1.29123, respectively.

As the situation develops, markets remain on edge, anticipating the potential global impact of these new tariffs.