FX.co ★ European Stocks Fall on Monday

European stock markets experienced a minor decline on Monday, influenced by President Trump’s unexpected announcement to implement a 30% tariff on European Union goods. This development has escalated concerns of a more profound economic slowdown across Europe, prompting warnings from leading financial institutions. Goldman Sachs and Barclays have voiced concerns that such a move might hinder economic growth and potentially compel the European Central Bank (ECB) to consider rate cuts. Meanwhile, JPMorgan highlighted the unexpected nature of the tariff, which had initially been anticipated to be set at only 10%. In reaction, the EU is preparing to counter with €72 billion in tariffs, with Trade Commissioner Maros Sefcovic stating that all possibilities remain open while discussions with U.S. officials proceed. The European automotive industry suffered notably, as Volkswagen, BMW, and Mercedes saw declines of up to 2.5%, with Volvo dropping 5% after cautioning about profitability challenges linked to tariffs on its electric vehicles. On the contrary, defense stocks, such as Thales, witnessed gains following President Macron's announcement of a €6.5 billion military expenditure plan.