European markets plunge as Trump threatens 50 pct tariffs on EU imports

BERLIN -- European stocks fell sharply on Friday after US President Donald Trump escalated trade tensions with the European Union (EU), proposing sweeping new tariffs and targeting tech giant Apple. The announcement reignited investor fears over the economic fallout of a renewed transatlantic trade war.

Posting on the social platform, Trump said he is recommending a 50 percent tariff on all goods imported from the EU starting June 1, citing stalled negotiations with Brussels.

"Trade talks are going nowhere," he wrote, adding that the EU "was formed for the primary purpose of taking advantage of the United States on TRADE".

The markets responded swiftly. The European STOXX 600 index slid over 2.16 percent to 537.39 points before paring some losses. National indices were also hit hard, with Italy's FTSE MIB, Germany's DAX, France's CAC 40, and Spain's IBEX 35 each falling more than 2 percent. The DAX dropped to a two-week low, briefly touching 23,325.5 points during the session.

"This latest threat is worse than the worst-case scenario," said Fiona Cincotta, senior market analyst at City Index.

Political leaders across Europe condemned the proposed tariffs. German Foreign Minister Johann Wadephul said the move would harm both sides and pledged Berlin's continued support for negotiations.

The European Commission "has our full support in maintaining our access to the American market, and I believe such tariffs don't help anyone. They would only cause economic development in both markets to suffer," Wadephul said.

"That's why we continue to pursue negotiations and support the European Commission. We want to defend Europe and the European market while simultaneously exerting the power of persuasion in America."

Poland's Trade Minister Michal Baranowski, whose country currently holds the rotating EU presidency, struck a more cautious tone. "The EU and the US are negotiating -- some behind closed doors, others more publicly," Baranowski said. "Public statements don't always translate into actual policy actions."