European stock markets opened sharply lower on Wednesday as U.S. President Donald Trump’s steep new tariffs took effect, sparking a fresh sell-off in global equities. Major indices quickly fell into the red, with Paris down 2.4 percent and Frankfurt dropping 2.2 percent, as goods from the European Union are now subject to a 20 percent tariff upon entering the United States.
London also slid 2.3 percent, with the UK facing a 10 percent levy that came into effect on Saturday. The widespread market downturn reflects growing investor concern over the escalating trade war between the U.S. and its key trading partners, particularly Europe and China.
The new tariffs have raised fears of an economic slowdown as companies face increased costs for materials and products, which could lead to higher prices for consumers and a slowdown in global trade. Many European businesses, particularly in the automotive and manufacturing sectors, are bracing for the impact of the additional tariffs, which could exacerbate supply chain disruptions already caused by previous trade measures.
While the European Union has vowed to retaliate, there is growing uncertainty over how the situation will evolve, especially as President Trump has made it clear he is ready to escalate the trade conflict further.
As the U.S. continues to press ahead with its protectionist policies, the global economy faces increasing risks of a prolonged trade war that could affect growth prospects worldwide.
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