(Reuters) – 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 (NYSE:STLA) and Volkswagen (ETR:VOWG_p) 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 U.S. 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.
Among specific stocks, Roche fell over 1% after its late-stage lung cancer study failed to meet the primary endpoint of overall survival. The Swiss company also plans to acquire U.S. biopharma firm Poseida Therapeutics in a cash deal worth up to $1.5 billion.
Meanwhile, Melrose (LON:MRON) Industries led gains on the STOXX 600, rising 8%, after JP Morgan upgraded its target price on the aerospace company’s stock.
(This story has been refiled to remove extraneous words in paragraph 6)