Stocks of GM and Ford took a hit, amid concerns that Trump’s plan for tariffs on imports from Mexico and Canada could cut auto sales more than a million cars.

Chinese shares closed lower amid cautious sentiment after Trump pledged an additional tariff on Chinese imports. "Sentiment will be negatively impacted on Chinese risk assets especially in those markets with heavier foreign investor participation,

The 25% import tariff on Mexico promised by Donald Trump would hurt European carmakers as many of them manufacture cars there to be sold on the U.S. market.

European shares opened lower on Tuesday, dragged by automakers, as Donald Trump's tariff threat on the United States' largest trading partners prompted worries that the bloc might share the same fate in a likely global trade war.

European shares fell across the board on Tuesday, led by automakers, as Donald Trump's tariff threat on the United States' largest trading partners prompted worries that the bloc might share the same fate in a likely global trade war.