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.

Europe's STOXX 600 dipped at the open on Wednesday, with automobile shares yet again feeling the heat from Trump's proposed trade tariffs, while a sharp fall in French lenders dragged down the country's benchmark index.

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.