Ante Žigman, President of the Board of the Croatian Financial Services Supervisory Agency (Hanfa), has urged Croatian and European investors to rethink their strategies and shift focus from American assets to European companies, reports HINA.
Speaking to reporters on the sidelines of the Support for Sustainable Financing conference—co-organized by Hanfa—Žigman highlighted the rapid response of financial markets to newly imposed U.S. tariffs.
Just two days ago, the United States slapped 10% tariffs on imports from over 180 countries, with additional reciprocal tariffs depending on their trade surplus with the U.S. Notably, goods from the European Union were hit with 20% tariffs. China, facing cumulative tariffs of 54% on its exports to the U.S., retaliated Friday by announcing 34% tariffs on American goods, effective April 10. Europe’s response is still pending.
Markets reacted swiftly. By midday Friday, the pan-European STOXX 600 index had dropped 4.42%, facing a projected weekly loss of 7.5%. Other major indices followed suit: London’s FTSE fell 3.6%, Frankfurt’s DAX plunged 4.74%, Paris’ CAC was down 4.11%, and Milan’s FTSE MIB saw the sharpest drop—7.3%.
The Zagreb Stock Exchange also took a hit, with indices falling around 2%. The Crobex stood at 3,200 points and the Crobex10 at 1,999 points, wiping out all gains made in 2025 so far.
Žigman suggested the downturn reflects investors’ anticipation of potential EU countermeasures, particularly the possibility of tariffs on U.S. services—a sector where the U.S. holds a significant trade surplus with Europe.
“If the European Commission imposes tariffs on U.S. services, it could strike a major blow to U.S. capital markets and company valuations,” Žigman explained. “Unlike the current tariffs, which mainly target goods, services are where Europe could retaliate most effectively.”
However, he cautioned that escalating trade wars and retaliatory tariffs would ultimately harm all economies by increasing consumer costs and slowing growth.
Looking ahead, Žigman advocated for a strategic pivot in investment behavior. “It’s time for Croatian and European investors to reduce exposure to various U.S. assets and focus more on European stocks,” he said. He pointed out that many younger investors are heavily invested in U.S. tech companies, bitcoin, and cryptocurrencies—sectors predominantly based in America.
“As a patriotic countermeasure, we should start investing more in European companies and thereby strengthen the European capital market,” Žigman concluded.