Market Reaction to US Tariffs

Following the announcement by United States President Donald Trump imposing a 25% tariff on non-US made cars, European stock indexes experienced a downturn. The move, which also included threats of even larger tariffs on the EU and Canada, led to a significant drop in shares of several EU carmakers.

European Commission's Stance

Olof Gill, the European Commission spokesperson, responded by stating the EU's readiness to deliver a "firm" response to what it considers an "unfair" tariff policy by the US.

Index Performances

The DAX fell by 0.77%, with Heidelberg Materials seeing a 5.80% decrease. The FTSE 100 slipped by 0.27%, impacted by a 5.95% fall in Antofagasta. Similarly, the CAC 40 and Euro Stoxx 50 dropped by 0.51% and 0.62% respectively, with Stellantis tumbling by 4.18% on both indexes.

Currency Movements

Amidst the market turmoil, the euro appreciated by 0.38% against the dollar, trading at $1.07956, while the pound grew by 0.55% to $1.29596 by late afternoon CET.