European markets are experiencing a volatile start to the week as investors process a dramatic shift in U.S. trade policy. After a brief period of relief, a fresh wave of uncertainty has hit global exchanges following President Donald Trump’s announcement of a new 15% global tariff rate. The pan-European STOXX 600 index slipped 0.3% to 628.62 points in early Monday trading. This pullback follows a record-high close last Friday, which was driven by a U.S. Supreme Court ruling that struck down previous trade measures. However, that optimism evaporated over the weekend as the White House moved to re-establish trade barriers using alternative legal authorities. Germany’s DAX has been the most affected major index, dropping 0.7% as industrial heavyweights face renewed pressure. The technology sector led the broader market decline with a 1.3% loss. Within the German market, automotive and manufacturing stocks saw immediate selling pressure: BMW shares fell 1.4%, Daimler Truck dropped 1.1%, and Airbus lost 1.0%. The sudden policy shift centers on Section 122 of the Trade Act of 1974. Initially, the administration proposed a 10% levy, which was quickly raised to 15% on Saturday. This new rate is the maximum allowed under the statute without congressional approval and is currently set for a 150-day duration. The European Commission has signaled it will not immediately adjust its own trade stances, leading to concerns about a prolonged standoff. Analysts note that previous "reciprocal" trade deals, including those negotiated with the EU and the UK, are now in a state of ambiguity. It remains unclear whether these specific agreements will be honored or if the 15% blanket tariff will supersede them. While most sectors remain in the red, some domestic-focused industries have shown resilience. European banks emerged as top gainers, and Italy’s Enel rose 3.4% following a positive update on its three-year capital expenditure plan. Conversely, individual corporate news added to the downward pressure in specific pockets, such as Johnson Matthey, which plunged 14% after a significant price cut on a business unit sale. In the currency and commodity markets, the euro climbed 0.3% against the dollar to 1.1818, while safe-haven assets gained favor. Gold prices jumped 0.6% to reach a three-week high of $5,135 per ounce as traders sought protection against the escalating trade friction. This environment marks a return to high-stakes "trade war" dynamics. Investors are now closely monitoring the February 24 implementation date for the new tariffs, as well as potential retaliatory measures from the European Union. [Trump's 15% Tariff announcement](https://www.youtube.com/watch?v=kuxT_nB5mcM) This video provides critical context on the initial market reaction and the geopolitical friction following the President's latest tariff threats. http://googleusercontent.com/youtube_content/0