According to reports, President Trump announced on social media that starting June 1, he will impose a 50% tariff on the EU. This news has raised concerns over the escalation of the trade war, leading to a significant downturn in European stocks, particularly in the automotive sector. The pan-European STOXX 600 index fell by 0.93% on the 23rd, closing at 545.13 points, marking the largest single-day drop since April 9.

The automotive sector plummeted by 3.1%, banking stocks declined by 1.8%, and luxury goods heavily reliant on the U.S. market fell by 2.7%. The German DAX index dropped by 1.54%, the UK FTSE 100 index decreased by 0.24%, and the French CAC 40 index fell by 1.65%.

Investment strategist Lindsay James noted that the global trade war may escalate further and warned that the EU is unlikely to easily concede. Furthermore, increasing trade tensions have boosted safe-haven sentiment, causing the Swiss franc to rise against the dollar, while the British pound hit a one-year high.