European markets drop as US announces new import tariffs

European markets closed lower on Wednesday as traders braced for news about potential fresh US trade tariffs. Germany's DAX index fell 1.6%, dragged down by declines in construction, pharmaceutical, and healthcare stocks, according to CNBC

European stock markets extended their losses Thursday morning following US President Donald Trump’s stronger-than-expected trade tariffs announcements targeting dozens of trading partners, the agency reports.

The US leader’s announcement triggered selloffs in major European supply chain-reliant firms, including Adidas (-10.4%) and Maersk (-7.2%), along with the automotive sector, the agency notes.

The selloff also hit banking stocks, which dropped 2.8%. Meanwhile, shares in EU utilities—traditionally a defensive play during market turbulence—gained 1.9%, CNBC says.

European Commission President Ursula von der Leyen swiftly responded to the tariff announcement, stating that EU authorities are preparing countermeasures should negotiations with the US prove unsuccessful.