Singapore’s state investor Temasek has become more bearish on European companies over their exposure to a global trade downturn, just a year after opening a Paris office to great fanfare and promising to commit $19bn to the region.

Rising trade tensions from US President Donald Trump’s tariffs have made Temasek fearful that the European companies it has previously targeted for investment will be among the worst affected.

“There is a sense of elevated trade uncertainty, which could impact the growth trajectory” of Europe, said Lim Ming Pey, joint head of corporate strategy at Temasek. “Tighter credit conditions for the domestic market may also form headwinds, but the moderated inflationary pressures can enable the European Central Bank to keep rates low.”