European companies, from Swiss chocolatiers to German car parts makers, are preparing their "plan Bs" to adapt to U.S. trade tariffs that became a blunt reality on Tuesday, with a second barrage specifically targeting the region expected next month.

Stocks across the Atlantic were racking up gains Wednesday after U.S. Commerce Secretary Howard Lutnick signaled that Donald Trump could be willing to compromise when it comes to tariffs on Canada and Mexico,

Europe’s beleaguered automakers are also affected by high tariffs on imports from Mexico and Canada. Shares in Volkswagen, Mercedes-Benz and BMW all dropped early Tuesday, echoing the declines in U.S.