(Reuters) – European shares fell sharply on Thursday as U.S. President Donald Trump’s plan for a 25% tariff on cars and other goods from the European Union and the region’s vow to counter “firmly and immediately” fanned fears of an escalating trade war.
The pan-European STOXX 600 index has retreated 0.7% as of 0813 GMT, after closing at a record high in the previous session.
Shares of some of the biggest European carmakers skid, with an index of automakers and component makers falling more than 3%. Stellantis, Volkswagen and Porsche all reversed 2%.
Ferrari fell more than 6% after Exor sold a roughly 4% stake in the luxury automaker for 3 billion euros ($3.14 billion).
Rolls-Royce, however, soared 16% after the British engine-maker lifted its mid-term targets and beat 2024 profit growth expectations as widebody jets flew more and its cost-saving plan delivered.
In other earnings-related moves, WPP tumbled 16% after the British ad group reported a bigger-than-expected 1% fall in full-year organic revenue.
Howden Joinery dropped 6.6%, and dragged retailers down 1.7%, after the kitchen and joinery supplier missed annual revenue expectations.
(Reporting by Nikhil Sharma; Editing by Savio D’Souza)
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