European markets tumbled today after President Trump announced plans to impose a 50% tariff on all European Union imports starting June 1, citing stalled trade negotiations.
The pan-European Stoxx 600 index fell 2%, with auto and banking stocks dropping over 3%.
U.S. stock futures also declined sharply; Dow Jones futures dropped over 600 points (1.4%), S&P 500 futures fell 1.5%, and Nasdaq futures slid 1.8%.
Investors sought safe-haven assets amid growing fears of a transatlantic trade war.
German bond yields declined, and the Japanese yen strengthened.
The euro, which had been gaining, reversed some of its recent advances.
Trump’s tariff announcement, made via his Truth Social platform, accused the EU of unfair trade practices and highlighted a $250 billion annual trade deficit.
The proposed tariffs have raised concerns about potential retaliatory measures from the EU and the broader impact on global economic growth.
Analysts warn that escalating trade tensions between two of the world’s largest economies could have far-reaching consequences for global markets and supply chains.
