European stock markets experienced substantial declines on March 31, 2025, amid rising uncertainty regarding upcoming tariff decisions from U.S. President Donald Trump.

The sentiment across financial markets turned negative as investors weighed the potential impacts on global trade.

The Paris stock exchange closed down by 1.58%, while Frankfurt's index fell by 1.33%.

Milan's market saw a decline of 1.77%, London dropped by 0.88%, and Madrid experienced a decrease of 1.31%.

These movements reflect widespread anxiety among traders about the implications of new trade tariffs.

On Sunday, Trump stated that the tariffs he plans to implement would impact "all countries," not just those with significant trade imbalances with the United States.

The announcement coincides with the scheduled start of these tariffs on April 2, regarded by the President as a "Day of Liberation" for American trade policy.

This development has led to concerns regarding a potential escalation of trade tensions between nations, prompting analysts to monitor market reactions closely.

By the end of the trading day, the negative sentiment was palpable, as reflected in the performance of major European indices.