European stocks closed lower on Wednesday after U.S. President Donald Trump threatened to hike tariffs on Chinese goods if Beijing does not agree to a trade deal.
The pan-European Stoxx 600 slightly pared early losses to trade down 0.5% at 403.88 by the afternoon. Travel and leisure stocks led losses, trading 1.4% lower, while the China-exposed basic resources sector was around 0.9% lower.
During a meeting with his cabinet on Tuesday, the president said that if China did not make a deal, he would “just raise tariffs even higher.”
The comments came after reports that Beijing is pessimistic about the prospect of an imminent “phase one” trade deal due to Trump’s refusal to roll back existing tariffs.
Source : CNBC