European Markets React Sharply to New US Tariffs

European markets experienced a significant downturn on Monday, following the announcement by US President Donald Trump of imposing hefty tariffs on the European Union. A 20% tariff on EU goods and a 25% tariff on all foreign cars have sent shockwaves through the market, leading to a widespread sell-off.

Market Indices Take a Hit

The German DAX led the decline, sinking 8.04%, with Commerzbank shares dropping sharply by 12.20%. Similarly, the Euro Stoxx 50 and other major European indices, including the British FTSE 100 and the French CAC 40, recorded substantial losses. Notable companies such as Siemens AG and Roche Holding saw their shares tumble significantly.

Currency Movements Amid Market Chaos

While the euro saw a slight increase against the dollar, trading 0.35% higher, the pound sterling remained stable. The market's reaction underscores the growing tensions between the US and the EU, with trade ministers from the bloc expected to coordinate a response to Washington's aggressive trade policies.