European stocks slumped on Monday after U.S. President Donald Trump unexpectedly said at the weekend that he will increase tariffs on Chinese goods, pushing down shares as investors sought safety in less directly affected assets.
The pan-European STOXX 600 index ended 0.9 percent lower, in its worst day in about a month and a half.
German shares fell 1 percent in their worst one-day showing in 6-1/2 weeks. The index had tumbled as much as 2.2 percent during the session.
Stocks in Spain, Italy and France, fell from 0.8 percent to 1.6 percent. Equity markets in Britain remained shut for a bank holiday.
Stocks of auto-makers and their suppliers, generally sensitive to U.S.-China trade ructions, fell 2.1 percent to lead broad-based declines among the STOXX 600’s sub-sectors.
Auto supplier Stabilus shed 5.7 percent after cutting its full-year guidance due to the ongoing weakness in the global auto industry.
Stocks of chipmakers such as Siltronic, STMicro and AMS, which are also highly sensitive to trade war news, shed between 3 percent and 5.3 percent.