European markets fall 1% as traders await Trump tariffs; Volkswagen down 2%

European markets opened 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% lower shortly after the opening bell, with all sectors and major bourses firmly in negative territory. Germany’s DAX index led losses, shedding 1.2% during early trade.

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.”

By 8:18 a.m. in London on Monday, Europe’s Stoxx Automobiles and Parts index was 1.7% lower. Volkswagen was 1.7% lower, while Mercedes-Benz was down 1.5% and Renault had shed 2.5%.

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. stock futures fell on Sunday night.

There are no major earnings in Europe on Monday; data releases include Italian and German inflation prints.