European Markets React to US Tariff Announcement

European stock futures experienced a significant downturn on Thursday, following the announcement of US President Donald Trump's sweeping tariff policy. The policy introduces a 10% baseline tariff on all US imports, with a heightened 20% rate specifically targeting goods from the European Union.

Impact on European Economies

Economists from ING have labeled the announcement as "Europe's worst economic nightmare," predicting a potential reduction of 0.3% in euro zone growth over the next two years. This development has sent shockwaves through the market, with major indexes showing notable declines.

Market and Currency Reactions

By 8:02 am CET, the FTSE 100 had dropped by 1.66%, while Germany's DAX fell sharply by 431 points, or 1.92%. France's CAC 40 and the Euro Stoxx 50 also saw declines of 1.09% and 2.26%, respectively. Meanwhile, in currency markets, the euro and pound showed slight gains against the dollar, with the euro up by 0.86% and the pound by 0.67%.