By Mucahithan Avcioglu
ISTANBUL (AA) - European stocks closed Thursday with huge losses as US President Donald Trump announced reciprocal tariffs on most countries late Wednesday.
A minimum baseline tariff of 10% will be imposed on all countries except Canada and Mexico, with higher penalties charged on nations Trump deemed to be the "worst" trade offenders.
The president said his new economic effort seeks to "help build our economy" by spurring domestic manufacturing, raising government revenue and thwarting "cheating" on trade.
A tariff rate of 20% will be imposed on the EU.
In response, EU Foreign Policy Chief Kaja Kallas said there are “no winners in trade wars,” following the US announcement. “It’s clear that all these tariffs will raise prices for the consumers.”
Spanish Prime Minister Pedro Sanchez announced a €14.1 billion ($15.5 billion) plan to protect and modernize Spain’s economy in response to the US tariffs.
“The goal is to overcome this blow and make sure that the nonsense of certain leaders isn’t paid for by the same social majority as always,” he said in a speech.
Industrial producer prices in the eurozone rose at their fastest pace in two years, climbing 3% year-on-year in February.
The pan-European Stoxx 600 fell 2.57%, or 13.8 points, to 523.12.
Britain’s FTSE 100 lost 1.55% -- 133.74 points -- to close at 8,474.74, while Germany's DAX 40 index fell 3.01%, or 673.45 points, to 21,717.39
France's CAC 40 also was off 3.31%, or 259.85 points, to 7,598.98, and Italy's FTSE MIB 30 index slipped 3.6% to 37,070.83 in a 1,383.37-point dip.