European Markets Plunge Amid Intensified U.S.-China Trade War

European shares fell sharply as China raised tariffs on U.S. imports. Healthcare stocks led declines with major pharmaceutical firms dropping significantly. The escalating trade war has fueled fears of recession and inflation, overshadowing German political developments. Energy and mining sectors also suffered amid concerns over global economic stability.

European stocks plummeted on Wednesday following China's decision to more than double tariffs on U.S. imports, exacerbating an already tense trade war with potential global economic repercussions. Healthcare stocks took the hardest hit after President Trump threatened more tariffs targeted at the sector.

The steep decline of 5.8% in the healthcare sector marked the lowest point since October 2022, with noted pharmaceutical companies Roche, Novartis, Novo Nordisk, and AstraZeneca experiencing notable loses. China's announcement of an 84% tariff on U.S. goods came on the heels of the 104% tariffs the U.S. levied on Chinese imports.

With the trade war commanding major attention, investor confidence remains shaky. Any significant policy relief from Germany's coalition government was overshadowed by fears of recession and inflation driven by the trade tariffs, as well as declining oil and metals prices impacting related sectors.

(With inputs from agencies.)