FX.co ★ European Stocks Fall amid Auto Tariffs

European stocks experienced a downturn on Wednesday, with the Stoxx 50 index retreating by 1.4% and the Stoxx 600 slipping by 0.7%. These declines were primarily spurred by apprehensions over prospective U.S. automotive tariffs. The automotive sector was the hardest hit, plunging approximately 2.5%, following reports suggesting that President Trump was poised to unveil updates on trade policies, which might encompass tariffs on vehicle imports. The auto sector, heavily reliant on trade with North America, has been grappling with sustained uncertainty, particularly after Trump provisionally waived tariffs in March. Concurrently, UK markets responded to inflation data that fell short of expectations, alongside updates from the spring budget.