Trump proposes 50% tariff on the EU: European stock markets plummet

European stock markets posted sharp losses on Friday after Donald Trump announced his intention to impose 50% tariffs on European Union products starting June 1. The Ibex 35 fell 1.14%, while Wall Street also opened lower.

Former US President and Republican candidate Donald Trump shook global markets by suggesting at a political rally the imposition of 50% tariffs on the European Union as a trade pressure measure. The news generated uncertainty among investors, causing a widespread decline in major European stock markets.

– Ibex 35 (Spain): -1.14% (it fell as much as 2.5% after the announcement).

– DAX (Germany): -2.1%.

– CAC 40 (France): -1.8%.

– FTSE 100 (UK): -1.5%

"If we win the election, Europe will have to pay for the privilege of trading with the US." — Donald Trump.

The New York Stock Exchange (Dow Jones, S&P 500, and Nasdaq) also opened lower, reflecting market anxiety over a possible renewed trade war. Analysts warn that, if the measure materializes, automotive, agricultural, and technology companies** would be the most affected.

For its part, the European Commission responded cautiously, stating that "any protectionist measure will be met with a firm response." However, the specter of Trump-era tariffs (2018-2020) still looms large in the global economic memory.

– Greater market volatility: Investors could shift capital to safer assets such as gold or bonds.

– Possible price increases for European products in the US (cars, wines, cheeses, etc.).

– Risk of retaliation: The EU could impose its own tariffs, affecting US companies.

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