European stock markets retreated at the open Tuesday as US President Donald Trump kickstarted tariffs on Canada, Mexico and China, with the possibility that similar levies could hit Europe.
London’s FTSE 100 index shed 0.6 percent to 8,822.54 points, as traders also tracked developments surrounding a deal to potentially end the Ukraine war.
In the eurozone, the Paris CAC 40 index shed 1.0 percent to 8,112.49 points and Frankfurt’s DAX slid 1.4 percent to 22,833.55.
US tariffs of 25 percent on Canadian and Mexican goods came into effect on Tuesday.
The measure coincided with Washington raising a previously imposed 10 percent tariff on China to 20 percent — piling atop existing levies on various Chinese imports.
“There is still some market doubt as to whether all these tariffs will persist for a prolonged period of time,” noted Deutsche Bank analyst Jim Reid, even if retaliatory tariffs are expected.
Amid fears the European Union will be the next target, French Economy Minister Eric Lombard said Tuesday that the EU will be tough in negotiations.
“We have negotiators who are playing hardball, we will play hardball but… we need to reach a balanced deal to protect our economies,” Lombard said.