By Joe Wallace

Cars and banks are leading European markets lower after President Trump threatened to impose a 50% tariff on European Union goods within days.

-- Stellantis, Europe's second-largest carmaker and owner of Chrysler, fell more than 4% in Milan.

-- Porsche, which imports all the vehicles it sells in the U.S. from Europe, also hit the skids.

-- French lender Société Générale, Spain's Santander and Italy's Banca Monte dei Paschi di Siena fell sharply. Bank earnings are sensitive to the pace of economic growth, which could slow in Europe if Trump follows through on his threat.

-- Trade-focused bank Standard Chartered slid in London.

-- Luxury stocks including Hermes International and LVMH fell. The U.S. is a major market for European luxury brands, which produce most of their products in Europe.

Before Trump's warning shot on Friday, European stock markets had been recovering nicely from the "Liberation Day" selloff in early April. They've received a boost this year from the prospect of higher defense spending in Europe as well as moves by some investors to cut back exposure to the U.S.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

May 23, 2025 08:57 ET (12:57 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.