Europe’s worst-case scenario for the future of transatlantic economic relations rose to the surface this week when President-elect Donald Trump gave a clear signal that he’ll use American trade might as a means to exert foreign policy leverage.

European countries could be among those hardest hit if Trump follows through on tariffs. The European Union says it wants to negotiate but is prepared to retaliate.

By Joao Manuel Vicente Mauricio, Ankika Biswas and Pranav Kashyap (Reuters) -European stocks fell across the board, led by automakers, as Donald Trump's tariff threat on the United States' largest trading partners prompted worries about another global trade war.