European stocks close with sharp losses as trade war concerns intensify

ISTANBUL

European stock markets ended Tuesday down as US President Trump's implementation of 25% tariffs on imports from Canada and Mexico heightened fears of a global trade war.

Trump on Tuesday also doubled previously imposed 10% tariffs on China to 20%.

All three countries shot back with retaliatory measures, vowing further duties on American goods.

Canada’s premier said that they will impose 25% tariffs against $155 billion worth of American goods, Mexico’s president said retaliatory tariffs on the US will be announced on Sunday, and China has imposed 10-15% tariffs on some US food products.

Following these moves, the stock prices of some firms fell sharply, with carmaker Stellantis down 10% and Mercedes-Benz 4.8%.

French defense firm Thales jumped as much as 12% in earlier deals after reporting higher income and revenue for 2024 as its stock price closed 2.5% higher.

The firm was among many European defense companies to close higher on Monday on expectations of higher military expenditures in Europe.

The pan-European Stoxx 600 fell 2.14% or 12.06 points to 551.07.

Germany's DAX 40 index dove 3.54%, or 820.21 points, to 22,326.81, while Britain’s FTSE 100 lost 1.27% — 112.31 points — to 8,759.

France's CAC 40 also fell 1.85%, or 151.79 points, to 8,047.92, and Italy's FTSE MIB 30 index sank 3.41% to 37,736.16 in a 1,333.24-point fall.