European equity markets fell on Tuesday as renewed U.S.–China trade tensions weighed on sentiment, while Michelin (EU:ML) shares tumbled to their lowest level in more than two years after the company issued a profit warning.
The pan-European STOXX Europe 600 index slipped 0.6% as of 07:18 GMT, retreating to a near two-week low after Monday’s brief rebound.
Global markets had already sold off sharply on Friday when U.S. President Donald Trump threatened to impose an additional 100% tariff on Chinese goods in response to Beijing’s rare earth export restrictions. Although Trump struck a more conciliatory tone over the weekend, both Washington and Beijing began imposing new port fees on Tuesday on ocean shipping firms moving goods ranging from holiday toys to crude oil.
Mining stocks led the decline in Europe, falling 2%, while automakers lost 1.5%. Michelin sank 9.3% after cutting its full-year outlook due to weaker-than-expected conditions in North America that have eroded sales volumes and profit margins. Continental AG (BIT:1CON) dropped 3.7%, and Pirelli & C. S.p.A. (BIT:PIRC) declined 2.1%.
In contrast, Ericsson (NASDAQ:ERIC) surged 12.4% after reporting stronger-than-expected quarterly earnings and downplaying the potential impact of U.S. tariffs.
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