European Markets React to US Tariff Announcements

Investors across Europe are on high alert as major stock indexes experience significant drops in premarket trading. The focus is squarely on how EU leaders will respond to the recent announcement of reciprocal tariffs by United States President Donald Trump, set to take effect on April 9.

Indexes Across Europe Take a Hit

Germany's DAX was hit hard, plunging 4.83% or 1,013 points by 7:42 am ET. Not far behind, the British FTSE 100 saw a 0.79% slip, while France's CAC 40 declined by 2.58%. The Euro Stoxx 50 wasn't spared, falling by 4%, and Italy's FTSE MIB took the heaviest blow with a 7.44% plummet. Switzerland's SMI and Spain's IBEX 35 also faced steep declines, losing 5.38% and 6.33% respectively.

Currency Movements Amid Market Chaos

In the midst of the market turmoil, the euro showed a slight gain against the dollar, trading 0.25% higher at $1.09910. The British pound, however, remained steady against the dollar at $1.29099.