(Bloomberg) -- European equities tumbled after U.S. President Donald Trump announced tariffs on Mexican products, with the White House’s latest attempt to stem immigration from the Latin American country risking jeopardizing a new North American trade agreement.
Companies with large exposure to Mexico fell, including Spanish banks BBVA and Banco Santander SA, carmakers like Fiat Chrysler Automobiles NV, and brewers such as Sol lager-producer Heineken NV. The Stoxx Europe 600 benchmark slipped 1.1% to bring its decline for the month to 5.9%, the worst such period this year.
Haven sectors like health care, utilities and telecommunications fared better, given the waning risk appetite, but still declined.
Sentiment had also been hurt overnight by developments in China, as Beijing readies a plan to restrict exports of rare earths to the U.S. if necessary, and as data showed China’s manufacturing sector slowed more than expected in May.
“Bad news comes in threes,” said London Capital Group’s Jasper Lawler. “Risk aversion is on the up and the flight to safety is in play for the umpteenth time over the past 30 days.”
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