European shares closed sharply lower on Wednesday afternoon as U.S. authorities unveiled a new list of Chinese products that could see tariffs.
The pan-European Stoxx 600 ended the day down by 1.2 percent, with all sectors in the red. Basic resources fell the furthest on the back of renewed trade war concerns and closed 3.3 percent lower. The oil and gas sector was 2.3 percent below the flat line.
U.S. Trade Representative Robert Lighthizer has said that there could be a new 10 percent tariff on $200 billion of Chinese goods. Officials in China have said the tariffs harm the World Trade Organization (WTO) system and globalization.
Meanwhile, President Donald Trump said in Brussels that Germany is “totally controlled” by Russia. The comments could lead to heated discussions at a NATO summit starting today, the first leg of his European tour.