Europe markets close lower; autos stocks fall 1.7% as investors digest Trump tariff threats
European stocks closed lower Tuesday as investors assessed the implications of U.S. President-elect Donald Trump’s plans to hike tariffs on China, Mexico and Canada.
The regional Stoxx 600 provisionally ended down 0.5%, with major bourses and most sectors in negative territory. Autos stocks fell 1.7% amid fears of a global trade war rocking the industry, with Stellantis, parent company of Jeep and Dodge, down nearly 5%.
Media stocks and household goods, meanwhile, were among the outliers in the green, both adding around 0.3%.
The index had ended higher for a third straight session on Monday, as global momentum in equities lifted Wall Street’s Dow Jones Industrial Average to a new record.
Trump on Monday said one of his first acts in office would be to impose an additional 10% tariff on all Chinese goods entering the U.S., and threatened a 25% tariff on products from Mexico and Canada, ending a regional free trade agreement.
Economists have previously flagged the potential inflationary impact of Trump’s fiscal plan, which could see the Federal Reserve cut interest rates at a slower pace. That in turn could boost the U.S. dollar against currencies such as the euro and sterling.
Source: CNBC
