Stocks in Europe Drop as Automakers Face Tariffs – Europe Market Wrap

European markets slumped after the US pushed forward with tariffs on automakers and promised additional trade penalties, raising investor concerns about the impact on global economic development.

Meanwhile, S&P 500 futures were barely changed following the previous day’s 1.1% decline. Gold prices rose, but the Dollar remained steady.

Trump is moving rapidly to impose new trade tariffs, saying on Wednesday that vehicle imports will face a 25% duty and threatening more duties on the EU and Canada. The EU is prepared for a large round of tariffs, which will target the bloc as early as next week. Among its retaliatory possibilities is the consideration of deploying one of the EU’s most powerful trade-policy weapons, the so-called anti-coercion instrument.

Euro-area bond yields fell as expectations rose that the central bank will slash interest rates to buffer the impact of trade-related disruptions.

[01:51 ET] Trump: Plans increased duties if the EU cooperates with Canada against the US