European markets experienced a downturn on Wednesday as investors prepared for the implementation of new U.S. trade tariffs. The Stoxx 50 fell by 0.4%, while the Stoxx 600 saw a decrease of 0.6%, undoing the gains from Tuesday's recovery. The majority of sectors experienced declines, with the healthcare sector suffering the most, dropping nearly 2% due to diminishing hopes for tariff exemptions. Bayer, in particular, saw a nearly 4% drop, leading the sector's losses.
Investor concerns escalated when President Trump reiterated that his "reciprocal tariffs" would be enforced across "all countries." Reports indicate a 20% tariff could be imposed on many imports, though the final details remain unclear. The White House confirmed that these measures would be implemented immediately upon announcement.
Compounding the trade tensions, the U.S. is poised to introduce a 25% tariff on foreign-manufactured cars. In other news, UniCredit has received approval for its acquisition bid for Banco BPM, while Crédit Agricole secured clearance from the European Central Bank to increase its stake in the Italian financial institution.
