Europe’s banks were shot down when tariffs on Trump put us a recession on the horizon

European banks were shot down after a wide and more aggressive tariffs of US President Donald Trump.

The European banking business index extended hemorrhage on Friday morning from another 9.28% loss to 12:42 pm in London time as giants German bank. Intesa Sanpaolo. Santander Bank and Primit Each gave up 9% to 11% of the stock value.

In Switzerland which faced with an American tariff at least 31% According to the latest measures, stock of the largest bank Continental Europe UBS decreased by 8%.

The lenders deduce a double attack storm associated with their significant impact in the US and the decreasing prospects for the European economy.

Economists warn that the responsibilities announced on Wednesday-with 10% tariffs on all trades and further mutual fees on target colleagues will be able to go to higher costs for US consumers, feeding internal inflation and firing the risk grew awkwardly high.

“I do not think that (recession in the US) is inevitable because the economy structure is so strong, but the risk has become uncomfortable,” he said in Sylvia Amar Cnbc on the sidelines of Ambrosetti forum in Chernobio, Italy.

Meanwhile, Morningstar’s Surma’s Surmansh Warned on April 3: “Economic slowdown (or recession) has a significantly negative impact on the growth of the US banking loan, credit expenses, charges for investment banking, profitability and asset management fees.”

Critical recession is usually translated into a decrease in interest rates, which pulsations in a net reduction of the interest margin for the financial sector also reduce the demand for credit and strengthen the chances of default.

The European banks have already struggled with this mystery, as in June last year the European Central Bank began to reduce rates-was forced to cancel traditional attention on pure lending to expenses such as investment banking and asset management.

In addition to responding to high uncertainty in the outstanding American economy, European – and wider global – financial institutions are also vulnerable to interruptions and volatility in dollars, given the significant reserves of dominant currency in the world.

They are also influenced by the perspective of the suppressed European economic growth, as trade tariffs threaten demand for goods from Europe. Within the EU, which will be subject to 20% fee, Poland warned on Thursday that US protectionist trade policy would cost the Polish economy 0.4% of the gross domestic product, or approximately 10 billion Zlotys ($ 2.6 billion).

In a note on Thursday, Deutsche Bank warned that the gross domestic product of the eurozone could suffer from 0.4-0.8 percentage points after the tariffs in the US, more than the hit in the lender of 2025-2026.

The EU Executive Hand, the European Commission, is working on a package of short -term economic proposals to support the region’s economy amid tariffs in the US, Bloomberg News reported on April 2 – with the main EU Ursula von der Leyen still Only talks The fact that the block is “preparing for further countermeasures to protect our interests and our business if they do not receive negotiations.”

Global Bank of America Global Research strategists have warned of a significant shortage of the banking sector after the tariffs, noting that the lenders still “assisted strong stories from the bottom up and German financial hopes, and thus the least advanced in the world-macro prices.”

European banks, in particular German lenders, have joined regional defense companies in recent weeks after the European Union and its largest economy have taken measures to relax their borrowed rules to push security costs, increasing the prospects of stimulating regional credit.