DUBLIN - European stock markets closed lower on Thursday (3/4) after U.S. President Donald Trump announced reciprocal tariffs, triggering a global sell-off.

The Stoxx 600 Index closed down by 2.7%, the UK's FTSE 100 fell by 1.6%, Germany's DAX dropped by 3.1%, and France's CAC 40 recorded a 3.31% decline. Several other stock markets in Europe such as Austria, Belgium, Denmark, and Finland also weakened, with losses ranging from 1% to 4%.

The U.S. President imposed a baseline tariff of 10% on all imports to the U.S. and a 20% tariff on goods from the European Union, with an even higher tariff of 25% on imported cars set to take immediate effect.

European Commission President Ursula von der Leyen said that universal tariffs announced by the U.S. are a major blow to businesses and consumers worldwide. "Europe is prepared to respond. We'll always protect our interests and values. We're also ready to engage," she wrote on X, as reported by Nasdaq.

Meanwhile, France’s President Emmanuel Macron urged French companies to pause planned investments in the U.S., calling the tariffs a shock for international trade.

Stocks across various sectors recorded sharp declines, including mining, energy, retail, and airlines. Amid the global sell-off, pharmaceutical stocks held steady as the sector was not subject to reciprocal tariffs. However, this reprieve may be short-lived as the White House continues to outline future plans.

WTO Director-General Ngozi Okonjo-Iweala issued a statement regarding the new U.S. tariffs, “These measures, coupled with those introduced since the beginning of the year, could lead to an overall contraction of around 1% in global merchandise trade volumes this year, representing a downward revision of nearly four percentage points from previous projections," she wrote as quoted by The Guardian. (LM)