(fxcue news) - European stocks declined on Tuesday, after having hit a record high in the previous session led by defense-related stocks. Trade tensions weighed on markets after U.S. President Donald Trump's long-threatened tariffs against Canada, Mexico and China went into effect today. Canada announced 25 percent tariffs on $107 billion worth of U.S. goods, with $20.7 billion in immediate effect. Mexican President Claudia Sheinbaum said her country is preparing countermeasures. China has announced 15 percent tariffs on U.S. chicken, wheat, corn and cotton, plus 10 percent cent tariffs on soybeans, pork, beef and dairy beginning March 10. The pan European STOXX 600 dropped 0.9 percent to 558.28 after rallying 1.1 percent in the previous session. The German DAX lost 1.5 percent, France's CAC 40 fell over 1 percent and the U.K.'s FTSE 100 was down 0.6 percent. Automakers led losses, with Volkswagen, Renault, BMW and Stellantis losing 2-5 percent. Oil & gas giant BP Plc slumped 4 percent and Shell gave up 3.2 percent, tracking the downward trend in crude oil prices. Ashtead Group shares tumbled 3.5 percent. The British equipment rental firm missed third-quarter pre-tax profit and revenue expectations but maintained its full-year outlook. Germany's Continental AG plummeted 9 percent after saying it expects limited improvement to profitability this year. Bilfinger, an industrial services provider, rallied 3.6 percent after lifting dividend and confirming its mid-term view. Low-cost carrier Wizz Air Holdings slumped 4.6 percent after unveiling passenger tariff figures for January. Fresnillo, a precious metals mining company, climbed 2.2 percent after announcing a solid financial performance for the full year ended December 31, 2024. Defense and technology group Thales soared 10 percent in Paris after reporting robust 2024 earnings.