CAC 40 Down Nearly 2.5% As Tumble On Trump's Tariff Announcement

(RTTNews) - French stocks are down sharply Thursday morning, mirroring losses in markets across Europe amid concerns about the impact of new tariffs announced by U.S. President Donald Trump.

The U.S. President announced a 10% baseline on all US imports and a 20% rate for goods from the European Union, with a steeper 25% tariff on imported cars set to take effect immediately.''

It is feared that the new levies could fuel inflation and disrupt global supply chains and lead to trade wars.

President of the European Commisson, Ursula von der Leyen posted on X that the 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.

The benchmark CAC was down 189.52 points or 2.41% at 40 7,669.31 a few minutes ago.

Essilor is down nearly 6.5%. Bureau Veritas is declining 4.2% and BNP Paribas is down nearly 4%. Legrand, LVMH, Hermes International, Kering, ArcelorMittal, Saint Gobain, Dassault Systemes and Accor are down 3 to 3.7%.

Societe Generale, Safran, Publicis Groupe, Airbus, Credit Agricole, Schneider Electric, Michelin and Capgemini are lower by 2 to 3%.

STMicroElectronics, L'Oreal, TotalEnergies, Renault, AXA, Air Liquide, Teleperformance and Veolia Environment are also notably lower.

Eurofins Scientific is up nearly 4%. Orange, Danone, Carrefour and Engie are gaining 1.5 to 2.3%. Stellantis and Sanofi are up with modest gains.

Data from S&P Global said the HCOB France Composite PMI for March 2025 was revised slightly up to 48, from the flash estimate of 47, and above February's 13-month low of 45.1.

France's private sector saw its seventh consecutive month of contraction, although the downturn was just modest and the mildest since October 2024. Manufacturing activity improved with the PMI score coming in at 48.5, up from 45.8 in February, while services PMI improved to 47.9 from 45.3.

Eurozone producer price inflation accelerated notably in February on surging energy prices, Eurostat reported Thursday. Producer prices logged an annual growth of 3% in February, following January's 1.7% increase.

Eurozone March final HCOB Composite Output Index came in with a score of 50.9, up from February's 50.2 reading.