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European equity markets are experiencing their worst session since the outbreak of the COVID-19 pandemic in March 2020 as US President Donald Trump reiterated his commitment to eliminating US trade deficits — particularly with China — while denying any intention to fuel market turmoil.

As of 3:10 pm CET, the Euro STOXX 50 was down 5.27%, the broader STOXX 600 fell 5.15%, while France's CAC 40 declined 3.78%, gaining some lost ground from earlier but remaining in the red. Germany's DAX dropped 3.47%, and London’s FTSE 100 was lower at 3.90%, both also recouping some earlier losses. In Italy, the FTSE MIB dropped 5.66% and Spain's IBEX 35 lost 5.75%.

In the US, major indices also opened in the red on Monday afternoon with the tariff sell-off sending the S&P 500 into bear market territory. It fell 3.2% at the session open, while the tech-heavy Nasdaq Composite declined 3.9%. The Dow Jones also opened lower, down 3.2%.

Trump insisted he had not deliberately triggered the intense market sell-offs. Yet, he also demanded financial reparations from Europe: “We put a big tariff on Europe. They are coming to the table; they want to talk, but there’s no talk unless they pay us a lot of money on a yearly basis — not just for the present, but also for the past.”

"The bloodbath is in full swing, and that’s exactly what you see when you look at the European markets. There is no safe haven; equity markets have entered a complete free-fall with no clear bottom in sight," Zaye Capital Markets said in a note sent to Euronews on Monday.

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