Tariff Turmoil: European Shares Plunge Amid Global Sell-Off

European shares fell sharply as U.S. tariffs on Canada, Mexico, and China sparked a global sell-off, with investors fearing a similar impact on Europe. The STOXX 600 index dropped significantly, led by declines in automakers affected by supply chain challenges and potential increased consumer prices.

European shares took a steep dive on Tuesday, as U.S. tariffs imposed on Canada, Mexico, and China triggered a global sell-off, raising concerns over potential tariffs on Europe.

The STOXX 600 index plunged 2.1%, marking its worst performance since August 2024, with all regional markets closing lower. The German DAX suffered a 3.5% drop from record highs seen on Monday.

Automakers bore the brunt of the declines, as hopes for negotiation delays were dashed. With Trump considering a 25% duty on European imports, apprehensions grew over Europe's vulnerability. Financial services and energy stocks also faltered amidst falling oil prices.

(With inputs from agencies.)