European stock markets tumbled Thursday morning following U.S. President Donald Trump’s stronger-than-expected trade tariffs announcements.
The regional Stoxx 600 index was down 1.27% at 10:03 a.m. in London. Big retail names with global supply chains suffered, with German sportswear retailer Adidas falling 10.4%.
Shipping giant Maersk, widely viewed as a barometer for world trade, shed 7.2%.
The Stoxx Autos index initially dropped more than 2% as Trump’s 25% tariffs on imported vehicles to the U.S. took effect and added to existing new duties on steel and aluminum. However, the sector later pared losses to trade 1% lower.
Other sectors deeply in the red included banks, down 2.8%, while utilities stocks, traditionally a defensive play in times of market turmoil, rose 1.9%.
European Commission President Ursula von der Leyen responded to the tariffs announcements by saying the European Union is preparing further countermeasures against U.S. tariffs if negotiations fail. China, meanwhile, said Thursday that it would take “resolute counter-measures” against the sweeping U.S. tariffs and urged Washington to cancel the unilateral tariff measures.
The euro was 1.13% higher against the U.S. dollar in morning deals at $1.082, hitting its highest level since Oct. 9.
Trump’s announcements saw Asia-Pacific markets slide Wednesday, while U.S. stock futures were sharply lower.
