European Stocks Tumble Amid New Tariff Shockwaves

European shares ended the day flat on Wednesday, with early session gains wiped out by a new tariff threat from U.S. President Donald Trump, targeting pharmaceutical imports. The pan-European STOXX 600 index fell 0.06%, ending its brief upward trend, largely influenced by tumbling healthcare stocks.

The healthcare sector suffered a significant downturn, with its index plummeting 2.8% to reach its lowest point in over three months, following the unveiling of a tiered tariff plan by Trump. These tariffs could potentially escalate to 250% within 18 months, affecting European and Asian markets differently as exporters grapple with repercussions.

In related economic movements, Swiss President Karin Keller-Sutter held discussions with U.S. Secretary of State Marco Rubio over potential trade resolutions, as Trump's announcement of a 39% tariff on Swiss goods posed a threat to the Swiss economy. Elsewhere, the Swiss SMI index saw a 0.9% decline amid decreased valuations of pharmaceutical giants like Novartis and Roche.

(With inputs from agencies.)