European Markets Reel from Trump's Tariff Announcement

European financial markets experienced a significant downturn on Monday, following the announcement of new tariffs by US President Donald Trump. The tariffs, set at 20% on the European Union and 25% on all foreign cars, have sparked widespread concern among investors and policymakers alike.

Market Reactions Across Europe

The German DAX index was particularly hard hit, dropping by 8.04%, with Commerzbank shares falling by 12.20%. Other major indices, including the Euro Stoxx 50, British FTSE 100, French CAC 40, Italy's FTSE MIB, Switzerland's SMI, and Spain's IBEX 35, also saw significant declines. Notable losers included Siemens AG, F&C Investment Trust, Bureau Veritas, Assicurazioni Generali, Roche Holding, and ACS.

Currency Movements

Amid the market chaos, the euro gained 0.35% against the dollar, trading at $1.10017, while the pound sterling remained stable at $1.29010.

EU's Planned Response

EU trade ministers are preparing a joint response to the US tariffs, as pressure mounts to address Washington's aggressive trade policies. The situation remains fluid, with further market reactions anticipated in the coming days.