NEW YORK (Reuters) – Trade-sensitive industrials dragged Wall Street lower on Tuesday as tensions over tariffs between the United States and its European trading partners went from simmer to boil and the IMF lowered its global growth outlook.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., April 9, 2019. REUTERS/Brendan McDermid

All three major U.S. stock indexes finished the session in the red, with the S&P 500 ending its eight-day rally.

U.S. President Donald Trump said he would impose tariffs on $11 billion of European goods, raising tensions over aircraft subsidies that threaten to morph into a wider trade war.

“The European tariff thing caught people by surprise, just as we were working through the China (trade) issues,”