European stocks slumped after US President Donald Trump announced the steepest American tariffs in a century against its trading partners, including a 20% rate for the European Union, which vowed to retaliate.

European shares slumped to a two-month low on Thursday, with trade-sensitive Germany hit the hardest, as a fresh round of aggressive U.S. tariffs escalated a global trade war and stoked fears of an economic slowdown.

French Minister of Industry and Energy Marc Ferracci speaks during the questions to the government session at the National Assembly in Paris, France, March 18, 2025. REUTERS/Sarah Meyssonnier/File photo PARIS (Reuters) - Europe will respond to the likely implementation of tariffs by U.