European Stocks Slide: Market Reaction to Trump's Tariffs

European stocks reached a three-week low on Friday, shaken by investor fears over new U.S. tariffs impacting a range of countries, notably a 39% rate on Switzerland. The decrease followed a busy week in which external economic pressures escalated.

Healthcare stocks took a beating, dropping 1.3%, as U.S. President Donald Trump issued letters to 17 major pharmaceutical companies, including Novo Nordisk and Sanofi, urging them to cut U.S. prescription drug prices. Novo Nordisk saw a 4.2% drop, hitting an almost three-year low, while Sanofi fell by 1%.

The pan-European STOXX 600 index experienced an almost 1% decline by 0720 GMT, continuing its downward trajectory for the third consecutive session and slated to close the week in negative territory. The plunge was exacerbated by a record drop in Novo Nordisk shares and concerns over the implications of the evolving U.S.-EU trade deal.

(With inputs from agencies.)