European stock markets are experiencing a significant downturn as US President Donald Trump’s steep new tariffs
have come into effect, sparking a fresh sell-off in global equities.
The Paris and Frankfurt markets are down by approximately 1.8%, while London has taken a 1.9% hit, with Britain
facing a 10% levy.
The tariffs have sparked fears of a recession in the United States and beyond, impacting various sectors such as
luxury goods, automakers and banks. Susannah Streeter, head of money and markets at Hargreaves Lansdown, notes
that the world’s largest and second-largest economies are now locked in a trade war, with neither nation willing to back down.
Pharmaceutical companies are among the hardest-hit, with British drugmakers AstraZeneca and GSK both down over
4%. Novo Nordisk, Europe’s most valuable company, has seen a 5% decline in Copenhagen.
French pharmaceutical group Sanofi and German biotech firm Sartorius have also dropped around 5%.
Oil prices are also feeling the pinch, with British oil majors BP and Shell down over 3% due to fears of a knock to
global consumption. French semiconductor firm STMicroelectronics has lost over 4%, and automaker Stellantis has retreated over 3%.
You may also like: Trump Renews Call for US-Canada Merger Amid Trudeau Resignation
The impact of Trump’s tariffs is being felt across the globe, with markets in Asia also experiencing losses. The
EUR/USD exchange rate has broken below 1.03, reflecting the growing uncertainty and pessimism in the market.
As the trade war escalates, fears of a recession in the United States and beyond are growing. The situation is being
closely watched by investors and economists, who are bracing for potential economic instability.
The ongoing trade tensions between the US and its trading partners, particularly China, continue to create market volatility. With neither side showing signs of backing down, the uncertainty is likely to persist.
US President-elect Donald Trump is considering declaring an economic state of emergency to implement universal tariffs, which could further exacerbate the situation.
Investors are advised to exercise caution as the market continues to experience significant fluctuations. The situation is being closely monitored, and further updates will be provided as more information becomes available.
The implementation of Trump’s tariffs has sent shockwaves through the global economy, with European stocks plummeting and fears of a recession growing. The situation remains uncertain, and investors are advised to stay informed and adapt to the changing market landscape.
