FX.co ★ European Stocks Slump on US Tariffs

European equities experienced a significant decline on Friday following an announcement by U.S. President Trump, who suggested implementing 50% tariffs on the European Union, a move that could significantly impact demand from this key export market. The Eurozone's STOXX 50 index fell by 1.9% to settle at 5,322, while the broader STOXX 600 index slipped to 545. Sectors heavily reliant on U.S. consumers, such as automotive manufacturers, luxury brands, and textile producers, primarily led the downturn. Notably, shares of Mercedes Benz, BMW, Stellantis, Hermes, and Inditex saw declines ranging from 4.5% to 2%. Meanwhile, the potential for retaliatory actions by the European Commission weighed on banking stocks, with Intesa Sanpaolo, UniCredit, and BBVA each losing about 3%. In a contrasting development, Germany's first-quarter GDP growth was revised upward to 0.4% from the previous estimate of 0.2%. This improvement was attributed to robust manufacturing output and a surge in exports in March, indicating strength in the face of escalating trade tensions.