European stock markets declined on Friday, as Trump’s 25% auto tariffs continued to pressure the region’s crucial automobile sector and dampen investor confidence.
Key Index Movements
- Germany’s DAX: ↓ 0.5%
- France’s CAC 40: ↓ 0.6%
- UK’s FTSE 100: ↓ 0.3%
Auto Sector Under Pressure
The Trump administration’s tariffs on auto imports have sparked global concern, particularly in Europe, where car exports to the U.S. are significant.
- The European automobiles and parts index is now at its lowest level since early December.
- Europe’s automakers exported 800,000 vehicles to the U.S. last year.
German Chancellor Olaf Scholz criticized Trump’s move:
“The U.S. has chosen a path at whose end lies only losers, since tariffs and isolation hurt prosperity, for everyone.”
Economic Indicators
- Germany’s GfK consumer sentiment index:
- Inched up to -24.5 (from -24.6), signaling persistent weak sentiment.
- UK retail sales:
- Surged 1% in February, defying expectations of a 0.4% decline.
- Clothing and household goods spending led the increase.
With economic uncertainty rising and trade tensions escalating, investors remain cautious.