Global markets, businesses and long-standing geopolitical relationships were thrown into disarray on Thursday, the day after U.S. President Donald Trump announced his tariff policy — and Europe was not spared from the chaos.

The European Union has been hit with 20% duties, while the U.K. was hit with a lower 10%, benefiting from its more balanced U.S. trade relationship. All eyes will now be on how far policymakers will go in their response, and how deeply the conflict can escalate.

Most analysts agree that, from an economic perspective, there are few — or perhaps no — winners from the expected slowdown in growth and the fracturing of trade ties.

Some bright spots nevertheless emerged among European assets on Thursday — as well as some deeply negative ones.

Europe’s Stoxx Luxury 10 index closed 5.2% lower on Thursday, its worst session in nearly four years, with Burberry, LVMH and Gucci owner Kering all suffering.

The EU describes the U.S. as a “major destination” for food and beverage products, such as wine, beer, spirits, chocolate, cheese and olive oil.

“Our sectors are highly integrated across the Atlantic and our shared trade in spirits supports many jobs on both sides, across manufacturing, distribution, farming, retail and hospitality,” trade body Spirits Europe said in a statement on Thursday. “We want to ensure a return to an environment that supports continued growth for both EU and US producers.”

Sales of French wine and spirits to the U.S. are expected to fall at least 20% in the U.S. as a result of new tariffs, Gabriel Picard, chairman of industry group FEVS, told France’s BFM TV late on Wednesday.

Germany was the EU’s largest exporter of goods to the U.S last year. The European country is home to some of the region’s biggest carmakers, including BMW, Volkswagen, Mercedes-Benz and Porsche — all of which are now subject to 25% import tariffs.

In a note to clients on Thursday, Robin Winkler, chief economist at Deutsche Bank Research, said there was “no question that last night’s tariff announcement … is bad news for the German economy.”

“The negative surprise however lies not so much in the direct tariff hit,” he said, noting that markets had been expecting the reciprocal 20% tariff.

“However, the much higher US levies of 50% or more on Asian imports are a genuine surprise and imply a sharper global trade shock than we and most observers had expected,” Winkler said. “Indirectly, this is a negative shock for Germany, too.”

Germany’s Federal Association of Wholesalers, Foreign Trade and Services (BGA) slammed Trump’s reciprocal tariffs as “a frontal attack on world trade” in a statement on Thursday.

“With drastic tariff hikes for more than 100 trading partners, the American president is plunging the world into an open trade war with an American Brexit,” BGA President Dirk Jandura said in an emailed statement. “I assume that the conflict will significantly affect our economic growth. The longer it takes, the more painful it will be for everyone, including the USA.”

A host of retailers, selling clothes, shoes, household goods, electronics and beyond, have global supply chains based in Asia. South and Southeast Asian countries including Cambodia, Vietnam, Indonesia, Bangladesh and Sri Lanka are packed with factories which produce garments and products for companies such as H&M and Adidas — and were controversially hit with some of the highest rates among the recently announced U.S. reciprocal tariffs, many upward of 40%.

Danish shipping giant Maersk on Thursday said that the tariff plan announced by the White House would lead to more caution among its customers in a more fragile economic environment.

British bank Standard Chartered, which has high exposure to Asia, dropped 13.3%. Global juggernaut HSBC fell 8.9%.

Germany’s Volkswagen, Mercedes-Benz Group and BMW traded around 4% lower on Thursday afternoon, while Milan-listed Stellantis — which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot — fell 8%.

European currencies were one of the few asset classes in the region to rally on Thursday. The euro and the British pound touched on six-month highs, while the Swiss franc rose to its highest level against the greenback in since the middle of October.

Europe’s Stoxx Pharmaceuticals and Biotechnology index was 0.47% lower on Thursday, with British players GSK and AstraZeneca gaining 2.2% and 1%, respectively. Danish giant Novo Nordisk fell 2%.

Utilities stocks, which are traditionally a defensive play in times of market turmoil, jumped more than 3% Thursday. France-based Engie and Spain’s Iberdrola were among the sector’s top performers, both up more than 2%, with the latter notching a fresh 52-week high.