European stocks fall amid tariff concerns

European shares fell into the red, in stark contrast to a rally on Wall Street as investors worry that Donald Trump’s proposed tariffs will hit the continent’s exporters.

The STOXX Euro 600 index rose nearly 2% shortly after the open as traders noted gains in US stock index futures. But with less than an hour left in the session, the barometer of European shares is trading down 0.4%.

Fears that new President Donald Trump will impose tariffs, particularly on the auto sector, are causing shares of BMW, Volkswagen and Mercedes-Benz to fall by 6-8%.

Even the euro’s 1.9% fall to a four-month low, which usually helps exporters by making them more competitive, provided little support.

Shares in shipping company AP Moeller-Maersk fell more than 7% as investors fear the tariff war will damage global trade.