Il Nuovo Postiglione - US, European stocks fall as looming Trump tariffs raise fears

The dollar and oil prices dipped while gold, viewed as a safe-haven investment, came close to achieving a fresh all-time high.

After Tokyo's stock market closed up slightly and Chinese indices steadied, Europe dropped, led lower by Frankfurt, and Wall Street's leading indexes followed after the open.

"For traders and investors, today represents a day of huge uncertainty as we weigh up the potential for retaliatory tariffs and a tit-for-tat trade war," said Joshua Mahony, analyst at traders Scope Markets.

Global equities have been hit hard leading up to Trump's announcement -- dubbed "Liberation Day" -- with warnings that friend and foe are in the crosshairs after what he says is years of "ripping off" the United States.

He has trailed the measures for weeks, initially suggesting they would match whatever levies other countries impose.

But US media reported he has also considered either blanket 20-percent levies or another plan where some countries get preferential treatment.

Sweeping auto tariffs of 25 percent announced last week are also due to come into effect on Thursday.

The White House has said Trump will unveil his decision at 4:00 pm in Washington (2000 GMT), after Wall Street markets close, with the Republican promising a new "golden age" of US industry.

However, officials admitted he was still ironing out the details late Tuesday.

Chris Weston, analyst at investors Pepperstone Group, said the suggestion that the tariffs would be effective immediately would provide some certainty to markets, even if it limited the scope for talks.

"This scenario -- while hardly a positive for economics or earnings assumptions -- would increase the conviction behind how we respond to the 'facts'," he explained.

"That said, life is never straightforward, and we will still need to consider the counter-response from other countries."

The planned duties have ramped up fears of a global trade war after several countries warned they were preparing their responses.

Economists have warned that economic growth could take a hit and inflation reignite, dealing a blow to hopes that central banks would continue cutting interest rates.

Tesla shares sank around five percent in early trading after the electric car maker released lacklustre sales figures.

The firm reported a 13-percent drop in first-quarter auto sales amid lower production during factory upgrades, as well as perceived customer reluctance over CEO Elon Musk's work for the Trump administration.

- Key figures around 1015 GMT -

New York - Dow: DOWN 0.3 percent at 41,850.20

New York - S&P 500: DOWN 0.4 percent at 5,613.46

New York - Nasdaq Composite: DOWN 0.3 percent at 17,399.32

London - FTSE 100: DOWN 0.7 percent at 8,572.49 points

Paris - CAC 40: DOWN 0.8 percent at 7,814.50

Frankfurt - DAX: DOWN 1.3 percent at 22,245.82

Tokyo - Nikkei 225: UP 0.3 percent at 35,725.87 (close)

Hong Kong - Hang Seng Index: FLAT at 23,202.53 (close)

Shanghai - Composite: UP 0.1 percent at 3,350.13 (close)

Euro/dollar: UP at $1.0819 from $1.0793 on Tuesday

Pound/dollar: UP at $1.2945 from $1.2920

Dollar/yen: DOWN at 149.51 yen from 149.53 yen

Euro/pound: UP at 83.58 pence from 83.51 pence

West Texas Intermediate: DOWN 0.1 percent at $71.11 per barrel

Brent North Sea Crude: DOWN 0.24 percent at $74.31 per barrel

M.Vacanti--INP