Global Markets Recoil Amid U.S. Tariff Onslaught

European stocks experienced their sharpest one-day fall in over three months on Friday, ending a hectic week as investors weighed the impacts of new U.S. tariffs against multiple countries, including a hefty 39% tariff on Switzerland. Investors globally turned away from riskier equities amid U.S. President Trump's aggressive tariff announcements, which included major trading partners such as Canada, Brazil, India, and Taiwan. The base rate is set at 10% for other countries ahead of a looming trade deal deadline.

In notable market movement, healthcare stocks dipped 1% following President Trump's letters to 17 significant pharmaceutical companies, like Novo Nordisk and Sanofi, pressing them to reduce U.S. drug prices. Novo Nordisk, which was already struggling with a profit warning, witnessed a 1.8% drop, marking its worst weekly decline.

UBS Global Wealth Management's Anthi Tsouvali commented on European pharma's resilience despite tariff and policy uncertainties, noting its nearness to a bottom-out phase. Yet, the broader European export market remains vulnerable to global tariff hikes. The pan-European STOXX 600 index dropped 1.9%, witnessing its steepest one-week fall since early April amid measures from the U.S. administration.

(With inputs from agencies.)