Home / Market Update / Commodities / European Stocks Fall as Auto Tariffs Weigh on Market Sentiment

European Stocks Fall as Auto Tariffs Weigh on Market Sentiment

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.

Check Also

Tech and Media Stocks Tumble Amid Tariff Fears and Economic Uncertainty

Wall Street kicked off the week with sharp declines, as tariff uncertainties and economic concerns …