European markets dive as global tariff fears shake investor confidence

European markets closed in the red on Monday evening with the Euro STOXX 50 down 4.7% lower. It marks the worst session since early March 2022 (-4.9%).

Meanwhile,  France's CAC 40 closed down 4.78%, Germany's DAX ended the session 4.13% lower, and London’s FTSE 100 closed down 4.64%. In Italy, the FTSE MIB closed 5.18% in the red, and Spain's IBEX 35 lost 5.12%.

That's all for our live markets blog today. Thanks for following.

The S&P 500 went from a 4.7% drop shortly after the start of trading all the way to a surge of 3.4%, a gain that would have counted as its best day in years. It then quickly gave up all of it to revert to a drop of 1.3%, as of 10:30 a.m. Eastern time.

The Dow Jones Industrial Average was down 736 points, or 1.9%, and the Nasdaq composite was 1.3% lower. Both also whipped through intense reversals, with the Dow going from a loss of 1,700 points to a gain of nearly 900 points.



The intense swings come as financial markets strain to see hopes that Trump may let up on his stiff tariffs, which economists see raising the risks of a global recession.

Euronews has calculated that a total of 190 countries and territories—not counting all EU members one by one—were hit with tariffs, ranging from economic powerhouses like China to far-flung Pacific island nations like Vanuatu.

A baseline tariff of 10% was applied to countries that do not have a significant trade deficit with the US. In other words, this applies to countries where the US does not buy significantly more from them than they do from the US.

Some of these countries, including Belgium, the UK, Brazil, Chile and the Netherlands, actually operate a trade surplus with the US—namely the US imports more from them than it exports to them.

Countries facing a 10% tariff outnumber nations that have higher rates, and these levies went into effect on 5 April. Trump's so-called “reciprocal tariff rates”, on the other hand, go into effect on 9 April.

Read the full article by Una Hajdari here.

The European Commission has offered the United States a deal to remove tariffs on all industrial goods as part of the trade negotiations, Ursula von der Leyen has just said while stressing her intention to retaliate against Donald Trump's policies should talks fail.

"We stand ready to negotiate with the US. Indeed, we have offered zero-for-zero tariffs for industrial goods as we have successfully done with many other trading partners," the Commission president said on Monday afternoon.

"Because Europe is always ready for a good deal. So we keep it on the table. But we are also prepared to respond through countermeasures and defend our interests."

The "zero-for-zero" deal was offered in the past "repeatedly" for the automotive sector, von der Leyen said, "but there was no adequate reaction" from Washington.

The Commission expanded the pitch to all industrial goods in recent days as talks intensified, a spokesperson said. No further details were provided.

"We prefer to have a negotiated solution," von der Leyen said, warning her executive will use "all instruments" available to hit back "if necessary," including an anti-coercion instrument that was introduced in 2023 but which has never been triggered.

Read the full story by Jorge Liboreiro.

As global markets plunge, Goldman Sachs raised the probability of a US recession from 35% to 45% after Donald Trump imposed sweeping tariffs on global trading partners.

In response to the market turmoil, the US President said on Sunday that "sometimes you have to take medicine to fix something".

In the US, major markets opened in the red on Monday afternoon with the tariff sell-off sending the S&P 500 into bear market territory. It fell 3.2% at the session open, while the tech-heavy Nasdaq Composite declined 3.9%. The Dow Jones also opened lower, down 3.2%.

As of 15:10 pm CET, the Euro STOXX 50 was down 5.27%, the broader STOXX 600 fell 5.15%, while France's CAC 40 declined 3.78%, gaining some lost ground from earlier but remaining in the red.

Germany's DAX dropped 3.47%, and London’s FTSE 100 was lower at 3.90%, both also recouping some earlier losses. In Italy, the FTSE MIB dropped 5.66% and Spain's IBEX 35 lost 5.75%.

Meanwhile, The S&P 500 futures index fell below the key 5,000-point threshold during mid-morning trading in Europe, marking a decline of more than 20% from its February 2025 peak.

This could mark the official entry of the the S&P 500 into bear market territory, aligning with the Nasdaq 100, which had already crossed that threshold last Friday following steep losses in technology shares.

Polish Prime Minister Donald Tusk said on Monday: “The stock market earthquake from Japan through Europe to America must be survived without nervous decisions.”

Meanwhile, Germany’s acting Economy Minister Robert Habeck urged a “calm and united” European response. 

It comes as European equity markets are experiencing their worst session since the outbreak of the COVID-19 pandemic in March 2020.

Asian markets suffered historic losses as Hong Kong’s Hang Seng index plummeted 13% overnight — its worst daily performance since the 1997 Asian financial crisis, while Japan’s Nikkei 225 shed over 8%.

European bourses followed suit in the morning session, with the Euro STOXX 50 down 4%, Germany’s DAX falling 3.5%, and losses accelerating in southern Europe: the FTSE MIB fell 4.8%, IBEX 35 dropped 4.3% and France’s CAC 40 slid 4.1%. 

Investors are bracing for ripple effects on trade-dependent economies, corporate earnings, and global inflation dynamics. According to JPMorgan, there is now a 60% chance of a recession in the United States and globally, citing risks that the new tariffs could ignite inflationary pressures at home while also triggering a retaliatory cycle of protectionist policies, Euronews’ market analyst, Piero Cingari, noted.

Goldman Sachs chief economist Jan Hatzius has also revised his outlook, raising the bank’s 12-month US recession probability from 35% to 45%. In a note on Monday, Hatzius cited tightening financial conditions, a surge in geopolitical uncertainty, and signs of declining corporate investment.

“Foreign consumer boycotts and the anticipated collapse in business confidence are likely to hit capital spending harder than previously assumed,” he said.

Tesla Inc. shares are down more than 5% in US pre-market trading, positioning the stock for a decline exceeding 50% from its peak in late 2024.

The so-called Magnificent Seven — comprising tech giants Apple Inc., Microsoft Corp., Amazon.com, Alphabet, Meta Platforms and Nvidia — have collectively shed over $2 trillion in market capitalisation in recent days, Euronews' market analyst, Piero Cingari, noted.



On Friday, Apple, the world’s most valuable company, posted a 15% loss over three sessions — its steepest slide since October 2008.

A small delegation of Members of the European Parliament will travel to Washington DC from Wednesday to Friday for discussions with their counterparts in the US Congress, Euronews' Jorge Liboreiro reports.

The delegation will be led by Brando Beniefi (S&D, Italy) and will include Sophie Wilmès (Renew Europe, Belgium), David McAllister (EPP, Germany) and Michał Szczerba (EPP, Poland). Bernd Lange (S&D, Germany), who chairs the Parliament’s trade committee, will also be present.

“Discussions are expected to centre on developments in Europe, not least in relation to Ukraine, as well as on bilateral trade, EU-NATO cooperation, the future of transatlantic ties, and relations with China,” the Parliament said in a press release sent a few minutes ago.

EU lawmakers have been vocally critical about Donald Trump’s decision to impose punitive across-the-board tariffs on all US commercial partners, including low-income nations. However, according to the EU treaties, the Parliament has limited powers on trade negotiations and countermeasures, which are primarily decided by the European Commission.

Meeting in Luxembourg Monday, EU trade ministers are attempting to bridge their differences over the response to US tariffs.

Italian Deputy Prime Minister Antonio Tajani, whose country is advocating a cautious approach to the response to US tariffs, said upon his arrival to the meeting that he wanted the first retaliatory measures to be postponed. “Let's see if we can postpone it for a few weeks so that there is more time for dialogue,” Tajani said about the list of US products, due to be adopted Wednesday by the EU and which will be targeted by EU tariffs. The plan of the Commission is that the list once adopted becomes law on 15 April and then comes into force mid-May, Euronews’ Peggy Corlin reports.

The list has been the subject of intense lobbying for several weeks by EU member states and industries which fear US retaliation. The inclusion of Bourbon initially sparked the anger of US President Donald Trump, who threatened European wines and spirits with 200% tariffs. "I'm hopeful that this element will be taken off the list,” French Commission vice-president Stéphane Séjourné said on Monday in an interview to France Inter. 



France, Italy and Spain are all pushing for its removal from the list as they want to protect their wine and spirit industries.

We’ve just heard a brief reaction from the European Commission to the dramatic situation in the stock markets and also an update to President Ursula von der Leyen’s agenda, Jorge Liboreiro reports.

“I think everybody will agree that we don’t want to see markets and stocks plunging. It’s not in the interest of the overall economy, not of the European economy either,” Paula Pinho, the Commission’s chief spokesperson, said on Monday afternoon.

“That’s all we can say for now.”

Meanwhile, today, von der Leyen is scheduled to participate in two separate video conferences with representatives from the automotive and steel sectors. She will also hold talks with Frederik Persson, CEO of BusinessEurope, and Petri Salminen, president of SMEUnited.

“These meetings are to be seen in the context of the overall reach-out that the president is doing against the backdrop of the US tariffs,” Pinho explained.

The S&P 500 futures index fell below the key 5,000-point threshold during mid-morning trading in Europe, marking a decline of more than 20% from its February 2025 peak.

This could mark the official entry of the the S&P 500 into bear market territory, aligning with the Nasdaq 100, which had already crossed that threshold last Friday following steep losses in technology shares.

On Monday, Beijing struck a note of confidence even as markets in Hong Kong and Shanghai tumbled. The People’s Daily, the Communist Party’s official mouthpiece, had strong words. “The sky won’t fall,” it declared, even if the US tariffs have an impact.

“Faced with the indiscriminate punches of U.S. taxes, we know what we are doing and we have tools at our disposal," it added, as reported by AP.



Beijing had announced a slew of countermeasures Friday evening aimed at Trump’s tariffs. As part of these measures, China suspended poultry imports from some American companies, and put more export controls on rare earth minerals, critical for various technologies, while launching a lawsuit at the World Trade Organization.

The industrial sector also suffered heavy losses today.

Germany’s Rheinmetall AG plunged 15.3%, Safran dropped 10%, and MTU Aero Engines AG and Thyssenkrupp each fell 9.5%. HeidelbergCement, Leonardo SpA, Airbus, and Siemens Energy were all down between 8% and 9.2%.

As of 13:00 CET, some gains were made on earlier losses but all companies remained in the red.

European banks have also been hit by the market sell-off. As of 12:56 CET, Banco Sabadell was down 5.16%, Raiffeisen Bank International lost 3.70%, and ING Groep dropped 3.54%.

Banco BPM (-7.7%), Commerzbank (-7.6%), CaixaBank (-7.1%), BPER Banca (-6.7%), and Intesa Sanpaolo (-6.3%) were also hit by sharp declines on Monday.

The CEO of JPMorgan Chase, Jamie Dimon, says President Donald Trump’s tariffs will likely boost inflation.

In his annual shareholder letter, the Wall Street banker said: “Whatever you think of the legitimate reasons for the newly announced tariffs – and, of course, there are some – or the long-term effect, good or bad, there are likely to be important short-term effects.

“We are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products.”

As of 12:15 CEST, US crude, otherwise known as WTI, was trading down 3.74% at $59.84 per barrel while Brent crude fell 3% to $63.61.

“Oil markets have been significantly impacted by the escalating trade tensions and the implementation of tariffs. The prospect of a global economic slowdown has led to concerns about reduced demand for oil, resulting in a sharp decline in prices. Additionally, geopolitical developments, including sanctions on Russia and tensions in the Middle East, have contributed to the volatility in oil markets,” Zaye Capital Markets said in a note sent to Euronews.

Zaye Capital Markets said in a note sent to Euronews: “Absolutely—there’s no doubt about that. The well-known AI trade has now become even more appealing. Trump’s new policies are expected to provide a significant tailwind for automation. Once the dust settles, any company aligned with automation and technological efficiency could experience a surge in demand and investor interest.

“The opportunity is not limited to the US market; it’s truly global. Major indices around the world are under tremendous pressure, and we’ve already seen a notable correction. That said, this correction still has more room to run before we can realistically call it a “fire sale”—the point at which investors may be willing to go all in,” the group added.

“Currently, most indices are down nearly 20% from their all-time highs. But the real impact may come if we see another 20% drop from current levels, which remains a very plausible scenario given market sentiment and macroeconomic risks,” Zaye Capital Markets also noted.

“A reminder, the information in this article does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances. Also remember, we are a journalistic website and aim to provide the best guides, tips and advice from experts. If you rely on the information on this page then you do so entirely at your own risk.”

“This correction may present a strategic buying opportunity for discerning investors. While short-term volatility is inevitable, it rarely impedes long-term growth trajectories. Markets have historically recovered after shock crashes, and the reality is that tariffs will likely create new market dynamics rather than necessarily spelling an end to trade,” Nick Saunders, CEO of investment platform Webull UK, said in a note sent to Euronews. 

“While exporters in Asia and Europe may face headwinds, emerging economies could benefit from redirected trade flows as supply chains adapt. Astute investors are already identifying sectors with reduced tariff exposure, such as technology, healthcare, and defence, on the basis that these stocks have the potential to outperform.  The underlying economic fundamentals remain sound - corporate earnings, employment and consumer spending are relatively robust. Meanwhile, tech innovation and AI advancement will continue to generate compelling investment opportunities.

“The market downturn is based on fear of the unknown. Are tariffs a long term barrier of a negotiating tactic? Markets could rebound strongly on any hint that they could be removed. At the moment, the slump in global stock prices looks more like short term volatility than a prolonged downturn. It is a time to be cautious, but also a time of opportunity,” Saunders added.

Meanwhile, the FTSE 100 didn’t have a single stock in positive territory in the UK, which illustrates the severity of the situation. Big names that have been winning trades such as defence groups Rolls-Royce and Babcock were on their knees.

“Economic proxies were hit hard, including banks on the prospect of business activity becoming weaker as a result of tariffs. Miners tripped up amid fears of reduced commodities demand if the global economy slows down,” Russ Mould, investment director at AJ Bell, noted.

“British Airways owner International Consolidated Airlines dived on the prospect of weaker demand for its transatlantic flights. Tech-related names dropped hard as investor risk appetite vanished into thin air, with Polar Capital Technology Trust and Scottish Mortgage among the biggest fallers on the UK stock market.

“Futures prices imply that Wall Street will continue the doom and gloom when its markets open later on.

“News that more than 50 countries have contacted the US to negotiate tariffs means that investors will be sitting on the edge of their seat waiting to see if anyone strikes a deal with Trump. Tariff-related deals are likely to be high up the list of catalysts to drive a recovery in markets, and the next few weeks are going to be crucial in terms of getting a better idea of the new lay of the land.

“Negotiations may not produce rapid results so there could be prolonged uncertainty and that spells heightened market volatility. Trump will drive a hard bargain and won’t back down or soften the blow unless the US gets something big in return,” Mould added.

“It’s rare to see double-digit falls in a single day for a major stock index, yet today is one of those days that will go down in history,” Russ Mould, investment director at AJ Bell, said in a client note sent to Euronews.

“Hong Kong’s Hang Seng index dived 13.7% as investors played catch-up in pricing in tariff risks in Asia after parts of its stock market were closed last Friday. In essence, Asia is lumping two horrible days on the market into one.

“That is the fourth biggest one-day decline ever in the Hang Seng*. We're seeing the biggest falls in Asia because it arguably has the most to lose from Trump’s tariffs.

“Asian countries have thrived from selling goods to the West, with places like the US having been hungry to access cheap labour.

“Asia became a huge manufacturing hub to the US and this situation now threatens to crumble unless Trump backs down or deals can be made to lower tariffs.

“It wasn’t just Asia struggling on the markets on Monday. We saw capitulation as indices also slumped across Europe, extending losses from last week and resulting in many blue-chip stocks falling by high single digits and even low double digits.

“This market sell-off feels brutal because it is relentless. Often, we see one or two bad days then a rebound. We’re now on day three and the sell-off is intensifying, not dying down.

“Fundamentally, investors are worried about a big hit to corporate earnings and a massive slowdown in economic growth. The potential end to globalisation throws up more questions than answers and that uncertainty is causing havoc on the markets," Russ Mould added.

As equities sink, traditional safe-haven assets are attracting inflows. The Swiss franc is up over 1% against the US dollar, and the Japanese yen is also strengthening. “Risk aversion dominates the currency market,” Luca Cigognini, market analyst at Intesa Sanpaolo, said. Meanwhile, the euro gained 0.5% to trade at $1.10, while the British pound struggles to hold ground.

Bond markets reflected the flight to safety. German Bund yields dropped 7 basis points, reversing the rise seen after Berlin’s recent fiscal stimulus announcement.

Commodity markets weren’t spared. Gold fell 0.5% to €2,754 per ounce, likely due to profit-taking after recent gains. Oil prices, meanwhile, extended their decline, with global crude benchmarks down 3.6% on Monday, pushing the three-day loss to 17% — the worst such stretch since March 2020.

With no signs of central bank intervention and geopolitical tensions escalating, markets are bracing for further volatility as economic and trade uncertainties deepen.

Read more here from our market analyst, Piero Cingari.

European banks bore the brunt of the sell-off, with Banco Sabadell down 10%, Raiffeisen Bank International losing 9.2%, and ING Groep dropping 8.6%. Other sharp declines included Banco BPM (-7.7%), Commerzbank (-7.6%), CaixaBank (-7.1%), BPER Banca (-6.7%), and Intesa Sanpaolo (-6.3%), Piero Cingari, Euronews’ market analyst, reports.

“The industrials sector also suffered heavy losses. Germany’s Rheinmetall AG plunged 15.3%, Safran dropped 10%, and MTU Aero Engines AG and Thyssenkrupp each fell 9.5%. HeidelbergCement, Leonardo SpA, Airbus, and Siemens Energy were all down between 8% and 9.2%.

“Luxury and consumer goods firms, often sensitive to global trade disruptions, also declined. Kering fell 9.9%, Richemont 8.2%, and Burberry 7.8%. Salvatore Ferragamo, Hermès, Moncler, Adidas, Puma, and LVMH posted losses ranging from 6% to 12%,” Cingari said. Read more here.

As of 11:17 CEST, the Euro STOXX 50 fell 6.17%, the broader STOXX 600 dropped 5.64%, France's CAC 40 was down 6.20%, Germany's DAX declined 6.19%, while the FTSE 100 in London fell 4.58%. In Italy, the FTSE MIB dropped 6.51% and Spain's IBEX 35 lost 6.06%.

"The bloodbath is in full swing, and that’s exactly what you see when you look at the European markets. There is no safe haven; equity markets have entered a complete free-fall with no clear bottom in sight," Zaye Capital Markets said in a note sent to Euronews on Monday morning.

The sell-off was triggered by Trump’s latest protectionist measures, including a 34% tariff on Chinese imports, on top of an earlier 20% hike, and an additional 20% duty on goods from the European Union.

On his social media platform Truth Social, Trump defended the move, claiming it was a remedy for “massive financial deficits” and described the tariff revenues as “a beautiful thing to behold”.

European policymakers reacted swiftly, with discussions under way on a coordinated retaliation.

“We have the necessary tools to respond,” Spain’s Economy Minister Carlos Cuerpo stated, reflecting a growing consensus for retaliation.

Compounding market stress, Federal Reserve Chair Jerome Powell warned on Friday that the economic fallout from the tariffs could be “significantly larger than expected”, potentially stoking inflation while slowing growth. He added that the Fed is not in a hurry to cut rates, further denting investor confidence.

The European market sea of red follows an equally dramatic rout in Asia. Hong Kong’s Hang Seng Index plummeted 13% overnight — its worst one-day drop since the 1997 handover — while Japan’s Nikkei fell 8.6% and Shanghai’s Composite dropped 7%.

US equity futures also pointed to a deepening downturn, with S&P 500 contracts down 3.8%, Dow Jones Industrial Average futures off 3.3%, and Nasdaq 100 futures sliding 4.2%.

“The collapse of US equities after President Donald Trump announced his new tariffs will be remembered in the history books, as it prompted the fourth-largest two-day drop in the S&P 500 since its inception in 1957,” said BBVA in a note to clients on Monday.

The market carnage triggered by Donald Trump's trade tariffs continues at full speed on Monday, following three consecutive days of steep losses, with no sign of the bleeding stopping.

European equity markets are experiencing their worst session since the outbreak of the COVID-19 pandemic in March 2020, as investors continue to flee from risky assets.

The Euro STOXX 50 fell 6% by 10:00 CET, bringing its losses over the past three sessions to 14%. The broader STOXX 600 dropped 5.7%, extending its post-tariff announcement decline to 13%. The German DAX sank 7.2%, marking its most severe session since 12 March 2020, while Italy’s FTSE MIB fell 6.5% and Spain’s IBEX 35 lost 6%.

"The bloodbath is in full swing, and that’s exactly what you see when you look at the European markets. There is no safe haven; equity markets have entered a complete free-fall with no clear bottom in sight. The reason we say there is no bottom yet is that none of the underlying fundamentals suggest that the trade war is coming to an end. In fact, in many ways, it appears the conflict has only just begun. Market participants are not fully aware of the true extent of the damage, as current pricing is based almost entirely on estimations and assumptions," Zaye Capital Markets said in an email note to Euronews on Monday morning.

Turning to US futures, Zaye Capital Markets, said that most traders are afraid to even check their trading accounts.

"Futures are taking another massive nosedive today, and it's clear that significant downside risk still exists in this market. There had been some hope that reason would prevail and some form of remedy or reassurance would come from Washington. However, based on the most recent commentary, it appears traders will have to endure even more pain before any solution begins to form."

The group noted how it sets the stage for not just a challenging trading day but also rising fears of widespread margin calls.

"This is where the biggest risk lies. Many traders have likely not accounted for such risk, especially after the strong rally seen in recent months. If the current rout continues, the sell-off may intensify further, driven by forced liquidations due to margin calls—potentially resulting in even more market carnage."

US government bonds rallied sharply as yields plunged, with the 10-year Treasury yield falling below 4% for the first time since October 2024. In Europe, the yield on Germany’s 10-year bund also dropped to a four-month low.

However, gold futures declined in early Monday trade, extending losses from an all-time high last week as investors sold the metal to cover equity losses. Despite the pullback, analysts expect gold to remain a top-performing haven asset in the current environment.

Amid the market turmoil, investors turned to traditional safe-haven assets, sending the euro, Japanese yen, Swiss franc, and government bonds higher.

The euro surged against the US dollar to above 1.10 at one point last week, marking a six-month high. The EUR/USD pair stabilised above 1.09 during Monday’s Asian session following Friday’s retreat. Meanwhile, both the yen and the Swiss franc also strengthened to their highest levels against the dollar since October 2024.

US stock futures extended their declines, pointing to a sharply lower open on Monday. The S&P 500 futures were down 3.5%, Nasdaq futures slumped 4.5%, and the Dow Jones Industrial Average futures declined 2.9%. Meanwhile, the CBOE Volatility Index (VIX), commonly referred to as Wall Street’s “fear gauge,” surged 51% last week to above 45—a level not seen since 2020 and only briefly touched last August.

Equities across Asia and US stock futures extended losses during Monday’s Asian session, as the escalating global trade war continued to pressure investor sentiment.

Hong Kong’s Hang Seng Index plunged nearly 10% at the open on the return from a public holiday last Friday, erasing all gains since February. Chinese equities had rallied strongly earlier in the year on the back of DeepSeek’s launch of a lower-cost AI model, coupled with Beijing’s pledge for further stimulus. The Hang Seng Index had risen 24% from the start of 2025 to a peak on 19 March, before Trump’s reciprocal tariff announcement. Following the steep sell-off, the index is now up just 3.2% year-to-date.

Japan’s benchmark Nikkei 225 dropped 6% to an 18-month low in early trade, triggering a circuit breaker. The index has now declined over 20% from its January highs, entering bear market territory. South Korea’s Kospi index shed more than 4%, while Australia’s ASX 200 also declined by nearly 4%. Although the three benchmarks later recovered some ground, they remained in negative territory intraday.

“There could be big rallies this week on positive headlines. But there won't be a sustainable move until Trump indicates he has no intention to raise tariffs further and is open to negotiating lower tariffs with trading partners… It's as simple as that, really,” said Kyle Rodda, senior market analyst at Capital.com.

US President Donald Trump insisted he had not deliberately triggered the intense market sell-offs but reaffirmed his goal of eliminating the US trade deficit. Global equity markets have tumbled since Trump unveiled higher-than-expected reciprocal tariffs last week, wiping out trillions on Wall Street. On Friday, China responded with retaliatory tariffs, imposing 34% import levies on all US goods, marking a major escalation in the global trade war.

“I don’t want anything to go down, but sometimes you have to take medicine to fix something,” Trump said aboard Air Force One at the weekend. “We have to solve our trade deficit with China,” he continued. “We have a trillion-dollar trade deficit with China—hundreds of billions of dollars a year we lose. Unless we solve that problem, I’m not going to make a deal.”

Trump also demanded financial reparations from Europe: “We put a big tariff on Europe. They are coming to the table; they want to talk, but there’s no talk unless they pay us a lot of money on a yearly basis—not just for the present, but also for the past.”

European markets opened in the red on Thursday, mirroring a slump in Asian stock markets, as investors reel from US President Trump’s tariff announcements last week.

The UK’s FTSE 100 was 4.6% lower just before 10am CET, dragged down by firms like Shell, Rolls-Royce, and Barclays.

France’s CAC 40 was down 5.5%, while Germany’s DAX slid 6.5%.

Japan’s benchmark Nikkei 225 index closed 7.8% lower at 31,136.58, extending last week’s 9% drop.