European stocks fell Tuesday on the back of a fresh tariff threat from the United States government.

The pan-European Euro Stoxx 600 index closed provisionally 0.35% lower, with most sectors and bourses in negative territory. It comes after U.S. Trade Representative Robert Lighthizer on Monday proposed a list of European Union products on which to slap tariffs as retaliation for European aircraft subsidies, with Airbus down nearly 2%.

The U.S. is considering tariffs on about $11 billion of EU products ranging from aircraft parts to wine. The move comes as the President Donald Trump administration looks to retaliate against EU subsidies for Airbus, which the World Trade Organization ruled had "adverse effects" on America.

Other European-listed stocks such as Rolls-Royce, Thales, Dassault Systemes and Leonardo were seen as among the most exposed to Lighthizer's threat. Shares of each firm traded lower.

Drink maker stocks also went on a wild ride with Remy Cointreau, Pernod Ricard and Davide Campari all suffering losses. Other items on the U.S. list included some European-produced cheese, passenger helicopters, as well as certain types of motorcycles and ski suits.

The announcement comes shortly after a World Trade Organization ruling said the U.S. was guilty of illegal subsidies in production of Boeing aircraft.