European stocks steady in red after Trump tariffs

European markets were steady in the red early on Tuesday as US President Donald Trump’s tariffs, which include 25% tariffs on imports from Mexico and Canada, as well as additional duties on China, took effect.

The Stoxx 600 index fell 1% in early trading, with auto stocks within the index – one of the sectors most affected by the new tariffs – down 2.7%.

Among the companies affected were Dodge maker Stellantis, whose shares fell 4%, and Mercedes-Benz, whose shares fell 2.8%.

In contrast, French defence company Thales jumped 12% after reporting higher revenues and profits for 2024. The rise came amid gains made by European defence manufacturers on Monday, supported by expectations of increased defence spending in the region.