U.S. President Donald Trump threatened on the 23rd (local time) to impose a 50% tariff on European Union (EU) imports, causing European stocks to plummet.
As of 2:30 p.m. that day, the Euro Stoxx 50 index of large European stocks dropped 2.42% to 5,293.35 points compared to the previous session. Germany's DAX 40 fell 2.18%, and France's CAC 40 index decreased by 2.36%. The FTSE 100 index of the United Kingdom, which had already reached a trade agreement with the U.S., also fell by 0.99%.
Automakers Stellantis and Mercedes-Benz, as well as semiconductor company Infineon, which are heavily impacted by the tariff, also plummeted by around 4%.
European stocks started the day on an upward trend but sharply fell in the afternoon following news of President Trump's tariff threat.
President Trump stated on this day on his social media platform Truth Social that there has been no progress in negotiations with the EU, proposing to impose a 50% tariff starting on June 1.
The 20% reciprocal tariff that the U.S. agreed to apply on EU imports at the beginning of last month is currently suspended for 90 days.
President Trump posted this message a few hours before a scheduled call with Maroš Šefčovič, the EU Trade Commissioner, and Jamieson Greer, the U.S. Trade Representative.