European stocks experienced a significant decline on April 7, 2025, as the market reacted to U.S. President Donald Trump’s newly announced tariffs. The pan-European Stoxx 600 index fell by 5.2% by 9:52 a.m. London time, reflecting widespread losses across all sectors and major exchanges.
- European stocks dropped sharply on Monday
- Stoxx 600 index recorded worst week in five years
- Trump's tariffs sparked fears of trade war
- U.S. mega-cap tech stocks lost over $1 trillion
- Asian markets also faced significant sell-off
- Trump remains firm on trade policies
The recent downturn in European markets is part of a broader global sell-off triggered by Trump’s announcement of reciprocal tariffs targeting key trading partners. Last week, the Stoxx 600 recorded an overall loss of 8.4%, representing its steepest weekly decline in five years, only surpassed during the onset of the Covid-19 pandemic in early 2020.
Key statistics from today’s market include:
- The Stoxx 600 down by 5.2%.
- Germany‘s DAX index fell by 5.6% after previously dipping as much as 10% earlier in the session.
In response to these tariffs, China has imposed retaliatory tariffs of up to 34% on U.S. goods, while Vietnam faces duties as high as 46%. Other affected nations include Cambodia and Sri Lanka with tariffs set at approximately 49% and 44%, respectively. These developments raise concerns about potential disruptions to international supply chains that involve Asian economies.
Despite the negative market reaction, President Trump reaffirmed his commitment to his trade policies, stating that sometimes “you have to take medicine to fix something.” This sentiment reflects ongoing tensions between major economies and highlights the uncertain outlook for global trade relations moving forward.
The sharp decline in European stocks underscores growing fears over escalating trade tensions following Trump’s tariff announcements, which could have far-reaching implications for global markets and economies reliant on international trade.
