European shares opened lower on Tuesday, dragged by automakers, as Donald Trump’s tariff threat on the United States’ largest trading partners prompted worries that the bloc might share the same fate in a likely global trade war.
The pan-European STOXX 600 was down 0.5% as of 0820 GMT, set to snap a three-day winning streak.
The auto sector dropped more than 2%, with Stellantis and Volkswagen among the top losers.
President-elect Trump pledged big tariffs on Canada, Mexico and China, hurting the positive market sentiment following the nomination of Scott Bessent as US Treasury secretary.
The dollar rose, while global equities declined. Banks, retail and miners were some of the other badly-hit sectors, down more than 1% each.
European stocks off two-week highs as energy stocks weigh
Among specific stocks, Roche fell over 1% after its late-stage lung cancer study failed to meet primary endpoint of overall survival.
The Swiss company also plans to acquire US biopharma firm Poseida Therapeutics in a cash deal worth up to $1.5 billion.
Meanwhile, Melrose Industries led gains on the STOXX 600, rising 8%, after JP Morgan upgraded its upgrading their target prices on the aerospace company’s stock.
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