Europe Markets Resume Slide Amid U.S. Tariff Policy Chaos and Lack of Plans

Bridgette Randall
09 Apr, 2025
London

Stock market indexes in the currency union reversed gains of the previous session after the U.S. tariffs kicked in. 

Benchmark indexes in Frankfurt, Paris, Milan, and London dropped between 2% and 4% in Wednesday's trading, as the U.S. base tariff of 10% and country-specific reciprocal tariffs kicked in. 

European leaders ramped up discussions to present a united front, and France is likely to take the lead in convincing the U.S. president to lower its stiff tariffs of as much as 25%. 

On a day of light economic news in the region, investors focused on global developments, and China vowed to fight "till the end" amid escalating rhetoric from the White House. 

The European Union's exports to the United States amount to less than 3% of its gross domestic product and about 20% of total exports to the non-EU destinations.

European companies are facing rising pressure to freeze investment plans in the U.S. amid constantly changing U.S. trade policy, lack of clarity, and the unpredictable Trump administration.  

 

Europe Stock Movers 

Banks and industrial companies led the decliners across the eurozone. 

Airbus SE decreased 1.3% to €135.04, Rolls Royce Holding PLC fell 1.8% to 671.79 pence, and MTU Aero Engines AG plunged 4% to €269.70.

Rheinmetall AG dropped 2.8% to €1,279.0, Hensoldt AG decreased 1% to €59.90, BAE Systems plc increased 1.3% to 1,567.0 pence, and Thales SA fell 1.8% to €236.0.

Société Générale SA decreased 2% to €34.39, Credit Agricole SA fell 1.9% to €14.92, BNP Paribas dropped 2.1% to €64.80, Unicredit SpA eased 1.4% to €43.0, Barclays PLC fell 3% to 247.65 pence, and UBS Group AG plunged 3.8% to CHF 22.27.