European Shares Dip Amid Jitters Sparked by Trade War

European shares slid on Monday, joining a worldwide sell-off sparked by fears that U.S. President Donald Trump’s tariffs on Canada, Mexico and China mark an opening salvo in a global trade war that would curb economic growth internationally.

The pan-European STOXX 600 index, was down 1.3 per cent, set for its biggest one-day slide this year.

Futures for Wall Street’s S&P 500 also fell 1.4 per cent, while those on the tech-heavy Nasdaq fell 1.6 per cent.

Futures on the Russell 2000 index of small cap stocks, viewed as major beneficiaries of Trump’s policies, fell 2.3 per cent.

Europe’s biggest automakers, which are vulnerable to trade duties, sank by more than three per cent, while the region’s technology shares were also among the major losers, falling over two per cent.

The euro currency dropped 1.1 per cent.

In three executive orders, the United States imposed 25 per cent tariffs on Mexican and most Canadian imports and a further 10 per cent on goods from China, starting on Tuesday.