LIVE MARKETS-Trump tariffs sends STOXX lower; autos sector lags

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TRUMP TARIFFS SEND STOXX LOWER; AUTOS SECTOR LAGS

European shares are lower on Monday after Trump imposed tariffs on imports from Canada, Mexico and China, and threatened the EU with levies.

Canada has already imposed retaliatory measures and Mexico vowed it would do the same. China said it would take its case to the WTO.

"Tariffs and counter tariffs will be inflationary and lead to weaker growth prospects, both of which are negative for equities," says Jefferies economist Mohit Kumar.

The pan-continental STOXX 600 .STOXX index is down 1.2% in early trade. Other major regional bourses are falling between 0.9%-1.6%.

All the major sectors are in the red, with autos and parts .SXAP the biggest laggard, down 3.4%.

"In the absence of any exemptions, the automotive sector is among the most affected," writes Equita research analyst Alberto Gegra, who estimates about 25% of the cars sold in the U.S. are produced in Canada/Mexico.

Stellantis STLAM.MI, Volkswagen VOWG.DE and Mercedes-Benz MBGn.DE are the biggest fallers.

And while the market focuses on tariffs, French political drama lingers in the background.

New PM Francois Bayrou will use constitutional powers to pass the 2025 budget today, triggering a no-confidence vote scheduled for Wednesday. When his predecessor Michel Barnier did the same last year, his shaky government collapsed.

Rival parties appear split on whether to let Bayrou's government survive.

France's CAC 40 .FCHI is down 1.5% in early trade, in line with the broader market.

Here's your opening snapshot:

(Samuel Indyk)

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MONDAY'S OTHER LIVE MARKETS POSTS:

EUROPE BEFORE THE BELL: TRADE WAR UNDERWAY CLICK HERE

TRUMP TARIFF REALITY UNNERVES MARKETS CLICK HERE