Europe open: Auto shares pull Stoxx lower after Trump tariff threat
European shares opened lower on Tuesday, with the auto sector in focus after US President-elect Donald Trump promised to hit China, Canada and Mexico with big tariffs.
The pan-regional Stoxx 600 index was down 0.74% to 505 points with all major continental bourses lower.
“European equity markets braced for a sharp drop on Tuesday as Trump’s tariff threats against China, Mexico, and Canada sent shockwaves through global sentiment,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.
“The President-elect’s scorched-earth approach has stoked fears of a trade war, with investors increasingly wary that Europe could be next in his crosshairs.”
Shares in Stellantis, Volvo, Volkswagen, BMW and Daimler Truck were all down, while French car parts maker Valeo also declined.
Trump on Monday said he would impose wide-ranging tariffs on goods from the trio, with China quickly warning that "no one will win a trade war".
"On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25 percent tariff on ALL products coming into the United States," Trump wrote in a social media post.
He also said China would face an extra 10% "above any additional Tariffs", in response to what he said was its failure to tackle fentanyl smuggling.
Reporting by Frank Prenesti for Sharecast.com