FX.co ★ European Markets Fall on Trump’s Auto Tariffs

On Thursday, Europe's major stock exchanges experienced declines, with the STOXX 50 and the STOXX 600 indices each falling by 0.7%, largely impacted by the downturn in the automotive sector. This slump followed the Trump administration's recent announcement of a 25% tariff on vehicles not manufactured in the United States, scheduled to be implemented on April 2. Furthermore, President Trump has warned of even more significant tariffs on the European Union and Canada should they collaborate in response to these trade measures. Notably, shares of prominent automobile manufacturers such as Porsche, Volkswagen, Mercedes-Benz, Daimler Truck Holding, and BMW witnessed decreases ranging from 3.1% to 4.4%. In addition, Volvo Cars saw its share prices plummet by approximately 5.6%, a historic low for the company. The technology and semiconductor sectors also faced downward pressure, with notable declines in ASML Holding at -1.2%, STMicroelectronics at -2.2%, Infineon Technologies at -2.8%, and Dassault Systèmes at -3.8%.