Investor confidence in the Euro Area sharply declined following US President Trump’s tariff announcements. In April, investor confidence in the Euro Area fell to its lowest level since October 2023 following President Donald Trump’s tariff announcements. According to the statement from Sentix, a research company based in Frankfurt that specializes in markets, the Euro Area General Investor Confidence Index, which was at -2.9 in March, dropped by 16.7 points to -19.5 this month. Expectations for the index, hitting its lowest level since October 2023, were for it to decrease to -8.9. The Expectations Index, which measures investors’ outlook for the next 6 months, also dropped from 18 to -15.8. The record low of expectations since October 2023 was noteworthy. Sentix stated, “Trump’s tariff move sent Sentix economic indicators plummeting globally.” The statement indicated that after the planned super borrowing in Germany and the Euro Area, economic hopes rose in March, expecting massive investments financed by defense borrowing to boost the European economy. However, in April, expectations were dashed as Trump’s tariff announcement on the ‘Day of Liberation’ sent shockwaves globally. Meanwhile, in Germany, the Euro Area’s largest economy, the General Investor Confidence Index dropped by 15.3 points to -27.8 in April. The Expectations Index also fell from 20.5 to -15.8. Patrick Hussy, the CEO of Sentix, mentioned in his remarks that the “tariff shock” was fueling global recession fears, stating that by April 2025, the US economy would be in a recession. Many companies that are likely to lose sales and profits may have to lay off employees. On April 2, Trump announced new tariffs against many global trading partners, further exacerbating recession fears in the global economy. Last week, stock markets worldwide plummeted, continuing the downward trend today. The investor confidence survey was conducted from April 3-5 with the participation of 1,227 investors.