Europe markets drop ahead of Trump tariffs; Mining stocks hit four-year low

European markets traded sharply lower on Monday as global investors braced for U.S. President Donald Trump’s trade tariffs to come into force.

The regional Stoxx 600 index was 1.5% lower by 4 p.m. in London, with all sectors and major bourses firmly in negative territory.

The sell-off comes ahead of a raft of Trump tariffs set to come into effect on Wednesday, including a 25% levy on “all cars that are not made in the United States.”

Europe’s Stoxx Automobiles and Parts index was 3% lower. Volkswagen dropped 4%, while Mercedes-Benz was down 3.3% and Renault shed 2.5%.

The Stoxx Basic Resources index meanwhile tumbled 3.26% to its lowest level since December 2020, with mining and metals firms including Anglo American, Glencore, Rio Tinto and Antofagasta all down more than 3%.

The president is also expected to announce his plan for reciprocal tariffs. The Trump administration has dubbed April 2 — the day when Trump’s tariffs come into force and more sectoral levies are expected to be announced — “Liberation Day.”

Global markets and the U.S.’ biggest trading partners have been roiled by the fledging global trade war but Trump appears unrepentant. The Wall Street Journal reported Sunday that the president had, in recent days, pushed his advisors to get more aggressive when it comes to tariffs.

In a Saturday interview with NBC News, Trump said he “couldn’t care less” if foreign automakers raise their prices due to his auto tariffs.

U.S. stocks opened lower on Monday.