European Stocks Fall on Monday
European stocks slipped slightly on Monday as markets reacted to President Trump’s unexpected threat to impose a 30% tariff on EU goods.
The announcement raised fears of a deeper economic downturn across the region, prompting warnings from major investment banks. Goldman Sachs and Barclays said the move could derail growth and possibly force the ECB to cut rates, while JPMorgan noted the surprise nature of the tariff, which had previously been expected to be only 10%. In response, the EU is preparing €72 billion in counter-tariffs, with Trade Commissioner Maros Sefcovic emphasizing that all options remain on the table while continuing talks with U.S. officials.
The European auto sector was hit hard, with VW, BMW, and Mercedes losing up to 2.5%, and Volvo plunging 5% after warning of profitability issues linked to tariffs on its electric vehicles. On a brighter note, defense stocks like Thales rose following Macron’s €6.5 billion military spending plan.
Source: Trading Economics
