European Stocks Tumble Amid U.S. Tariff Storm and Pharma Pressure

European stocks dipped to a four-week low on Friday, concluding a hectic week marked by investor anxiety over new U.S. tariffs affecting numerous nations, including a significant 39% levy on Switzerland. President Trump expanded his tariff strategy, targeting exports from countries such as Canada, Brazil, India, and Taiwan, with others facing a 10% base rate as a key trade deadline loomed.

Healthcare stocks fell by 1.6% after Trump pressured 17 major pharmaceutical firms, including Novo Nordisk and Sanofi, to cut U.S. drug prices. Denmark-based Novo Nordisk dropped 4.9%, nearing a four-year low, partly due to the broader impact of Trump's actions on the sector. "Trump's move aims to reduce export costs to counterbalance U.S. subsidy cuts," said Mabrouk Chetouane of Nataxis Investment Managers.

The STOXX 600 index fell 1.3% by Friday morning, marking its third consecutive session of losses and continuing a downward trend from its March peak. Germany's DAX and Denmark's OMXC also experienced declines. However, Italy's Campari and the UK's Melrose Industries showed gains, the latter due to exceeding profit expectations. Meanwhile, European economic data offered mixed signals, with stable euro zone inflation but uncertain ECB rate cut prospects.

(With inputs from agencies.)