Published on 07/04/2025 – 10:24 GMT+2•Updated 11:27

European equity markets are experiencing their worst session since the outbreak of the COVID-19 pandemic in March 2020 as US President Donald Trump reiterated his commitment to eliminating US trade deficits — particularly with China — while denying any intention to fuel market turmoil.

As of 11:17 CEST, the Euro STOXX 50 fell 6.17%, the broader STOXX 600 dropped 5.64%, France’s CAC 40 was down 6.20%, Germany’s DAX declined 6.19%, while the FTSE 100 in London fell 4.58%. In Italy, the FTSE MIB dropped 6.51% and Spain’s IBEX 35 lost 6.06%.

Trump insisted he had not deliberately triggered the intense market sell-offs but reaffirmed his goal of eliminating the US trade deficit.

On Friday, China responded with retaliatory tariffs, imposing 34% import levies on all US goods, marking a major escalation in the global trade war.

Trump also demanded financial reparations from Europe: “We put a big tariff on Europe. They are coming to the table; they want to talk, but there’s no talk unless they pay us a lot of money on a yearly basis — not just for the present, but also for the past.”

“The bloodbath is in full swing, and that’s exactly what you see when you look at the European markets. There is no safe haven; equity markets have entered a complete free-fall with no clear bottom in sight,” Zaye Capital Markets said in a note sent to Euronews on Monday morning.

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