European Markets Plunge Amid Trump’s Threat of 50% Tariffs on EU

European markets witnessed significant declines today (May 23, 2025) following a post by U.S. President Donald Trump suggesting that the U.S. might impose 50% tariffs on the EU. Specifically, under the shadow of Trump’s tariff threats against the EU, the pan-European STOXX 600 index is currently down 2.83%, the FTSE 100 in London is also down 1.46%, Germany’s DAX is at -2.81%, and France’s CAC 40 is at -2.94%. The FTSE MIB in Milan is falling by 3.41%, while Spain’s IBEX 35 is down 2.75%. Meanwhile, Athens Stock Exchange’s General Index is dropping by 2.58%. Additionally, the euro is gaining against the dollar, while yields on European and U.S. government bonds are declining.