European stocks fell on Tuesday as renewed worries over the U.S.-China trade conflict weighed on investor sentiment, while shares of Michelin hit their lowest level in more than two years after the French tire manufacturer cut its annual outlook.
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The pan-European STOXX 600 index slipped 0.6% by 07:18 GMT, reaching its lowest point in nearly two weeks following a brief rebound on Monday.
Global equities had already suffered a sharp decline on Friday after U.S. President Donald Trump threatened to impose an additional 100% tariff on Chinese goods in retaliation for Beijing’s export restrictions on rare earth metals.
Although Trump struck a more conciliatory tone over the weekend, both countries began imposing extra port tariffs on shipping companies Tuesday, targeting goods ranging from holiday toys to crude oil.
The mining sector led losses in Europe, down 2%, while automakers fell 1.5%. Michelin’s stock plunged 9.3% after it cut its full-year forecast, citing tougher-than-expected conditions in the North American market, which led to lower sales volumes and shrinking profit margins.
Shares of Continental AG, the German auto parts maker, dropped 3.7%, while Italian tire manufacturer Pirelli lost 2.1%.
On a positive note, Sweden’s Ericsson surged 12.4% after reporting better-than-expected quarterly profits, successfully avoiding the impact of new U.S. tariffs.
