European stocks sink, Frankfurt down over 7%

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European stock markets plummeted in early trading Monday, with Frankfurt slumping as much as 10 per cent as a global sell-off intensified on US President Donald Trump's tariffs.

Indices were in freefall as the European Union faces 20 per cent tariffs due to take effect on Wednesday, after Britain and other nations were hit with 10 per cent duties on Saturday.

Frankfurt clawed back some of its early losses to trade down around seven per cent some 40 minutes into the trading day.

Milan dived 7.5 per cent as Paris, Madrid and Amsterdam retreated more than six per cent.

London and Oslo lost over five per cent in early deals.

"The big flight to cash continues as investors seek a shelter for their money amid the tariff storm," noted Susannah Streeter, head of money and markets at Hargreaves Lansdown.

"Trump has dashed hopes for an easing of policy by calling tariffs 'medicine' and investors are absorbing the implications of this bitter pill for the global economy."

Fears of recession in the United States and beyond caused a sea of red across equity markets, leaving no sector spared.

In Paris, share prices of planemaker Airbus, engine manufacturer Safran and Gucci-owner Kering led losses with each crashing 10 per cent.

German arms company Rheinmetall plunged more than 13 per cent and Commerzbank sank nearly 12 per cent in Frankfurt.

Aerospace group Melrose Industries topped the losers board in London with a drop of around 8.5 per cent.