European Equities Tumble on Renewed Tariff Concerns

European shares reached a month-long low as concerns mounted over U.S. trade policies and increased tariffs on Canadian metal imports. The STOXX 600 index fell amidst potential U.S. tariffs on EU automobiles. Uncertainty in markets persists, with travel and leisure stocks significantly affected by Delta Airlines' profit guidance cut.

European shares tumbled to their lowest in over a month on Tuesday as concerns over U.S. trade policies heightened following President Donald Trump's decision to double tariffs on Canadian steel and aluminium imports to 50%.

The pan-European STOXX 600 index fell by 1.7%, marking its fourth straight session in decline, the longest losing streak since December. The automobile and parts sector was significantly hit, dropping 1.9%, amid fears that 25% tariffs on EU cars could soon be imposed by the U.S.

Market volatility remains high, with investor anxiety fueled by Trump's unpredictable trade measures and political developments in Germany. Delta Airlines' reduced profit estimates due to U.S. economic uncertainty also weighed heavily, leading to significant losses in travel and leisure stocks. Notably, despite these challenges, the aerospace and defence sector experienced a slight rise.

(With inputs from agencies.)