The S&P/ASX 200 fell 0.4% to 8,840 on Tuesday, extending losses from the previous session as market sentiment remained cautious amid growing trade tensions between the US and Europe. US President Donald Trump warned that several European countries, namely Denmark, Norway, Sweden, Finland, Germany, France, the Netherlands and the UK, could face an additional 10% tariff unless a deal over Greenland is reached. Adding to the downbeat tone, the International Monetary Fund urged the Reserve Bank of Australia to take a cautious approach, noting that inflation has remained above the RBA’s 2%–3% target band for an extended period, despite headline CPI easing faster than expected in November. Financial stocks remained under pressure, with Commonwealth Bank, Westpac, NAB and ANZ down between 0.5% and 0.8%. Mining giants BHP Group, Rio Tinto and Fortescue slipped between 0.3% and 0.7%, after BHP once again exceeded cost estimates at its flagship Jansen potash project in Canada.