This was CNBC's live blog covering European markets.

European stock markets closed sharply lower on Friday, with investors still reeling from the scale of U.S. tariffs announced this week.

The regional Stoxx 600 index closed down 5%, marking its worst weekly-loss of the year, falling 8.3% compared to the previous week.

Banks shed 8.5% after Thursday's 5.53% plunge. The sector is seen as vulnerable to a slowdown in growth or a recession, now viewed as a much stronger possibility both for the U.S. and the global economy. Bank of America strategists said Friday that banks were also "among the assets least advanced in pricing global macro trouble."

China, which has been hit with a total tariff rate of 54% by the U.S., said Friday that it is retaliating with its own 34% tariff on all goods imported from the U.S. starting April 10.

In response, U.S. President Donald Trump said on Truth Social: "CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO!" 

Top posts

• El-Erian says U.S. recession risks are now 'uncomfortably high' | view post
• Why European banks are bleeding out in the wake of U.S. tariffs | view post
• BP chair Helge Lund to step down | view post

The Stoxx 600 closed 2.57% lower on Thursday, as the world digested the steep duties slapped Trump on more than 180 countries, bringing fears of a global trade war and a U.S. recession to a boiling point.

Among the hardest-hit sectors on Thursday was retail, with the Stoxx Luxury 10 index down 5.2% in its worst session for nearly four years. Shares of shipping giants Maersk and Hapag-Lloyd, bellwethers for the health of the global economy, both fell more than 9%.

The sweeping tariffs were particularly severe on export-reliant, developing economies in Asia which produce garments and other consumer goods for the rest of the world. Trump's 25% tariffs on imported vehicles to the U.S. also took effect this week, joining his duties on steel and aluminum.

The euro saw strong gains against the U.S. dollar on the news, hitting a six-month high, though it traded flat on Friday.

Economists are still scrambling to assess the scale of the fallout, which will depend on how long tariffs remain in their existing form and on how other nations retaliate.

The European Union on Thursday said it would prepare countermeasures against the U.S. if negotiations fail.

French President Emmanuel Macron urged French companies to pause planned investments in the U.S., and acting German economy minister Robert Habeck said Trump would "buckle under pressure" if Europe bands together in its response.

The EU was hit with tariffs of 20%, the U.K. of 10%, Norway of 15%, and Switzerland of 31%.

Economists at Goldman Sachs said in a Friday note that while the U.K.'s tariffs were lower than the others, they were nonetheless higher than expected, leading to a lower growth forecast for the British economy, down from 0.8% to 0.7% this year. The investment bank also trimmed its growth outlooks for Switzerland, Sweden and Norway.

Trump is also now saying he is open to negotiating a deal, despite White House aides insisting that global tariffs are not a bargaining tactic.

The market impact was even more severe in the U.S. Thursday was the worst day since 2020 for each of the three major U.S. indexes, with the Dow and S&P 500 down around 4% and 4.8%, respectively, while the technology-heavy Nasdaq Composite was down nearly 6%.

Asia-Pacific markets retreated on Friday, with Japanese stocks among the worst performers. U.S. stocks continued their decline, with the Dow falling 1,024 points or 2.5% at the open.

Europe stocks close lower

European markets ended the week lower, with investors still reeling from the scale of U.S. tariffs announced on Wednesday.

The pan-European Stoxx 600 provisionally closed 5% lower. The U.K.'s FTSE 100 was down almost 5%, Germany's DAX shed 4.7%, and France's CAC 40 was lower by 4.3%.

— Sawdah Bhaimiya

China played its response to U.S. tariffs wrong, Trump says

Trump hit back at the Beijing administration following China's decision to impose 34% retaliatory tariffs on all U.S. goods in the wake of Washington's own sweeping levies.

"CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO!" Trump said on the Truth social media platform.

This is not the U.S. president's first altercation with Beijing, after entertaining a tenuous trade relationship with China throughout his first term in the White House.

— Ruxandra Iordache

Trump tariffs are ‘pure madness’, former Italian prime minister says

The tariffs announced by U.S. President Donald Trump this week are "pure madness," former Italian Prime Minister and Dean of the IE School of Politics Enrico Letta told CNBC Friday.

"I think we have to be very clear and very frank. This is madness. This is pure madness," he told CNBC's Silvia Amaro on the sidelines of the Ambrosetti forum, adding that tariffs would create problems for people and economies.

"I think the European Union can't be compliant with this madness. We have to react," Letta added. Such a reaction should be flexible and measure, but also strong, he argued. The "only" effective reaction from Europe would be to fully integrate its single market, he said, noting that Trump was currently taking advantage of fragmentation in Europe.

— Sophie Kiderlin

Trump's universal tariffs are 'unwise, unjustified and unhelpful,' EU official says

The EU's Wopke Hoekstra blasted President Donald Trump's global tariffs as "unwise, unjustified and unhelpful" reiterating that the bloc is ready to retaliate if negotiations don't go well.

Hoekstra, European Commissioner for climate, net zero, and clean growth, said Friday: "There's no logical justification for this decision. When goods and services are taken into account, the EU has a small surplus with the US of €48 billion.

"This is the equivalent of just 3% of total EU-U.S. trade (€1.6 trillion). Also worth noting that the EU has a trade deficit with the U.S. when it comes to trade in services, where the U.S. records a surplus of €109 billion."

The EU was hit with tariffs of 20% and earlier this week European Commission President Ursula von der Leyen warned the region is preparing countermeasures if negotiations fail.

"My colleague Trade Commissioner Maroš Šefčovič has been doing some phenomenal work, in permanent touch with his U.S. counterparts. And he's made it clear that the EU is ready to negotiate with the U.S. But make no mistake: if the U.S. is not willing to work towards a fair and mutually beneficial outcome with us, we will not hesitate to deliver a firm, proportionate and well-calibrated response," Hoekstra said in a post on LinkedIn.

— Sawdah Bhaimiya

U.S. Stocks open lower as sell off continues

Selling pressure continued at the opening bell on Friday, with investors continuing to show signs of worry over Donald Trump's escalating trade war.

The Dow Jones Industrial Average fell 1,024 points, or 2.5%. The Nasdaq Composite fell 3.1%, while the S&P 500 lost 2.8%.

— Brian Evans

Trump's tariff announcement was "a bad economic policy decision," Portuguese minister says

U.S. President Donald Trump's tariff announcement this week was "a bad economic policy decision," Joaquim Miranda Sarmento, Portuguese minister of state and finance, told CNBC on Friday.

"The level of protection and the level of tariffs is unseen in the last decades," he told CNBC's Silvia Amaro on the sidelines of the Ambrosetti forum on the shores of Lake Como. "This decision is a bad economic policy decision," the minister added.

"The economic theory behind it, if I can call it that way, is not understandable. So I'm very concerned about the impacts that this will have," Sarmento said, suggesting this included an effect on the U.S. economy as well as around the world.

The tariffs as well as the uncertainty around Trump's trade policy were problematic, he noted.

Europe should however respond in a "very limited" way to the tariffs from the U.S., Sarmento suggested. "Government should be concerned about defending our firms, defending our products," he said and to "retaliate in a way that protects our economy."

After the announcement from the U.S. administration, the European Union said it was preparing countermeasures that it could impose if negotiations with the U.S. were not successful.

— Sophie Kiderlin

Price hikes, layoffs and import fees: Auto giants respond to Trump's tariffs

Auto giants have responded to Trump's tariffs by announcing plans to raise prices, impose import fees, pause production and even layoff staff.

The White House on Thursday introduced 25% tariffs on foreign auto imports, noting that it also intends to place tariffs on some auto parts no later than May 3. The measures, which were separate to Trump's sweeping new tariffs on major trading partners, have hit the global automotive industry hard.

German auto giant Volkswagen is said to be planning to add import fees to the sticker prices of its vehicles shipped to the U.S. in response to Trump's tariffs. Europe's biggest carmaker has also reportedly halted all rail shipments of vehicles built in Mexico to the U.S.

Stellantis, meanwhile, announced on Thursday it will pause production at two assembly plants in Canada and Mexico. The move means about 900 workers in the U.S. at supporting plants will be temporarily laid off.

Read the full story here.

— Sam Meredith

European businesses call for strong EU response to Trump’s tariffs

Eurochambres, a network of chambers of commerce across Europe that represents more than 20 million businesses, has urged the EU to implement a strong response to new U.S. tariffs.

"These tariffs jeopardize the status of EU:US trade as the world's most significant economic relationship," the organization's President Vladimír Dlouhý said in an emailed statement on Friday.

"The EU must respond appropriately and strongly if necessary, while remaining engaged with US counterparts. At the same time, we must mitigate the impact on our businesses through ambitious measures to boost competitiveness and capitalise on the full potential of the single market."

— Chloe Taylor

British pound slumps

The British pound fell 0.6% against the U.S. dollar by 1:06 p.m. in London, reversing the gains it saw in the previous session that lifted the currency to a six-month high.

Sterling also fell against other currencies on Friday afternoon, shedding 0.7% against the euro — which extended its rise against the greenback — and 1% against the Japanese yen.

— Chloe Taylor

U.K. Prime Minister Keir Starmer to hold trade talks with political leaders

Britain's Prime Minister Keir Starmer is set to hold discussions on trade with other leaders this weekend, in the wake of U.S. President Donald Trump unveiling an extensive raft of so-called reciprocal tariffs.

"We are very much aware that the global economic landscape is shifting, it means we have a responsibility to work even more closely with other countries to maintain stability and strengthen our partnerships abroad and you'll see the prime minister engaging with international leaders over the weekend on this," Starmer's spokesperson told reporters, according to news agency Reuters.

Under Trump's tariffs regime, products imported to the U.S. from Britain will soon be subject to new 10% duties.

— Chloe Taylor

Defense stocks slump as NATO chief touts alliance’s defense spend plans

European defense stocks dropped on Friday, with the regional Stoxx Aerospace and Defense index 7% lower at 12:30 p.m. in London.

The sell off put the index on course for its worst one-day loss since Nov. 2021.  

Italy's Leonardo was nearly 12% lower, while Britain's Rolls-Royce shed 10.6% and Germany's Renk Group was down by 9%.

Following a meeting with member states' foreign ministers, NATO Secretary General Mark Rutte said on Friday that the alliance would spend more on defense, noting that many member countries had already begun investing more.

Speaking at a press conference in Brussels, Rutte was questioned over whether U.S. President Donald Trump's tariffs regime would limit the capacity of NATO allies — the majority of whom are also EU member states — to ramp up defense spending.

"National governments have to make their decisions," he said on Trump's so-called reciprocal tariffs. "There can always be an issue that the money you expected to be there is not there, because of inflation … et cetera. I don't think I'm helping this alliance by commenting on something that is not alliance policy, and that is to make sure we can defend ourselves."

— Chloe Taylor

10-year Treasury yield tumbles below 4%

U.S. Treasury yields continued to plummet on Friday, with 10-year Treasury yield falling well below 4%, after China retaliated against President Donald Trump's aggressive "reciprocal tariff" policy rollout, causing investors to flood into bonds for safety on fears of a global recession.

The 10-year Treasury yield dropped over 16 basis points to 3.89%, falling to the lowest level since October. The yield had topped 4.8% earlier this year on hopes that Trump would rev up the U.S. economy with tax cuts.

Read the full story here.

— John Melloy and Sawdah Bhaimiya

China to impose 34% retaliatory tariff on all goods imported from the U.S.

China's finance ministry on Friday said it will impose a 34% tariff on all goods imported from the U.S. starting on April 10, following duties imposed by U.S. President Donald Trump's administration earlier this week, according to state news outlet Xinhua.

"China urges the United States to immediately cancel its unilateral tariff measures and resolve trade differences through consultation in an equal, respectful and mutually beneficial manner," Xinhua cited the finance ministry as saying in a Google-translated report.

The ministry further criticized Washington's decision to impose 34% of additional reciprocal levies on China — bringing total U.S. tariffs against the country to 54% — as "inconsistent with international trade rules" and "seriously" undermining Chinese interests, as well as endangering "global economic development and the stability of the production and supply chain."

CNBC has reached out to the White House for comment.

Read the full story here.

— Ruxandra Iordache

Pandora sheds 5% after announcing potential $176 million tariff impact

Danish jewelry maker Pandora shed 5% after the company revealed that U.S. President Donald Trump's tariffs would have a potential impact of 1.2 billion Danish krone ($176.6 million) on the company.

The in-year impact in 2025 is estimated to be around 700 million Danish krone ($103 million), Pandora said in a press release on Friday.

"Pandora notes the recent decision by the U.S. to impose tariffs on goods from several countries," it said in the release. "This impacts Pandora in relation to products imported to the U.S. and originating from first and foremost Thailand but also Vietnam, India, China and a number of other countries."

It said that 250 million Danish krone of the total 1.2 billion Danish krone impact is linked to goods sold in Canada and Latin America but distributed via the U.S., which Pandora expects to fully mitigate within the next 12 months.

"Pandora is actively exploring further mitigating actions to address the potential remaining DKK 950 million impact, including price increases and supply chain set-up," it said, adding that it will potentially provide an update on mitigation measures and its 2025 profit margin guidance in due course.

European retail companies were hit hard as many of their goods are manufactured in factories in Southeast Asia.

— Sawdah Bhaimiya

We’ll be lucky to get one rate cut from the Fed in 2025, Allianz’s Mohamed El-Erian says

Allianz's Chief Economic Advisor Mohamed El-Erian discusses the economic impact of President Donald Trump's tariffs regime.

Why European banks are bleeding out in the wake of U.S. tariffs

European banks have been battered in the wake of U.S. President Donald Trump's sweeping and more-aggressive-than-anticipated tariffs, which pose inflationary and recessionary risks to the world's largest economy. The European banking index extended its hemorrhage on Friday morning with a further 5.8% in losses by 9:15 a.m. London time.

Economists have extensively warned that the duties announced Wednesday — involving a blanket 10% tariff on all trade partners and further reciprocal levies on targeted counterparts — could bleed into higher costs for American consumers, fueling domestic inflation and stoking the risk of a recession — which Allianz Chief Economic Advisor Mohamed El-Erian warns has now grown uncomfortably high.

Critically, recessions typically translate into declining interest rates that ripple into net interest margin contraction for the financial sector, also reducing loan demand and bolstering the odds of loan defaults.

"Economic slowdowns (or recessions) have a materially adverse impact on the US banking industry's loan growth, credit costs, investment banking fees, trading profitability, and asset management fees," Morningstar's Suryansh Sharma warned on April 3.

Beyond reacting to high uncertainty in the prominent U.S. economy, European — and broader global — financial institutions are also vulnerable to disruptions and volatility in the greenback, given their substantial reserves of the world's dominant currency.

They are also impacted by the prospect of stifled European economic growth as a result of trade tariffs pushing local producers to lower their prices to sustain demand. Within the EU, which will be subject to a 20% levy, Poland on Thursday warned that the U.S. protectionist trade policy revealed Wednesday will cost the Polish economy 0.4% of its gross domestic product, or roughly 10 billion zlotys ($2.6 billion).

— Ruxandra Iordache

Europe stocks slide

Europe's Stoxx 600 index was 1.67% lower at 9:13 a.m. U.K. time, on track for a third straight day of sharp losses.

Banking stocks dropped 5.7%, while mining stocks lost 3.7%. The food and beverage sector bucked the trend to jump 1.1%.

Germany's DAX index was last down 1.74%, while the U.K.'s FTSE 100 and France's CAC 40 were both around 1.3% lower.

— Jenni Reid

El-Erian says U.S. recession risks are now ‘uncomfortably high’

President Donald Trump's extensive raft of import tariffs are putting the U.S. economy at risk of recession, Allianz's Chief Economic Advisor Mohamed El-Erian warned on Friday.

He added that Trump's swathe of so-called reciprocal tariffs could have a significant effect on the global economy.

"You've had a major repricing of growth prospects, with a recession in the U.S. going up to 50% probability, you've seen an increase in inflation expectations, up to 3.5%," he told CNBC's Silvia Amaro on the sidelines of the Ambrosetti Forum in Cernobbio, Italy.

"I don't think [a U.S. recession] is inevitable because the structure of the economy is so strong, but the risk has become uncomfortably high."

El-Erian also warned that markets were underestimating the inflation impact of the tariffs regime.

Read the full story here.

— Chloe Taylor

European banks drop 4% in early trade

European banking shares plunged in early Friday deals, with the Stoxx banking index down 4% at 8:26 a.m. in London at a two-month low.

Banks were among the worst-performing sectors Thursday as traders assessed the potential for a U.S. or global recession, with JP Morgan analysts raising their risk rating of the latter to 60% from 40%.

British bank Standard Chartered, which makes the majority of its profit in Asia, fell 4% after a 13.3% loss Thursday. Deutsche Bank, Natwest, Barclays, Danske Bank and Banco Sabadell were all more than 3% lower early Friday.

— Jenni Reid

BP chair Helge Lund to step down

British oil major BP on Friday said its chair Helge Lund will step down, kickstarting a succession process with support from the wider board.

Read the full story here.

— Sam Meredith

Reciprocal tariffs to cost the tech sector nearly $100 billion, says CreditSights 

CreditSights estimated that U.S. President Donald Trump's "reciprocal tariffs" would cost the technology sector nearly $100 billion based on the proposed rates for each country and the value of U.S. tech imports last year.

The estimate, released in a research note, excludes tariffs already enacted by the U.S., such as a 20% rate hike on China and 25% on Mexico and Canada for non-compliant USMCA goods.

The financial research firm said that the latest round of tariffs would also have a disproportionate impact on smartphones, specifically Apple, given its reliance on China for manufacturing.

It added that while Apple has been diversifying its supply chains to Vietnam and India, this will provide little relief as those countries will have 46% and 26% reciprocal tariffs, respectively.

— Dylan Butts

Goldman Sachs cuts oil price forecasts by $5 per barrel

Goldman Sachs slashed its price forecast for both Brent and WTI benchmarks on the back of tariff escalation and higher supply from OPEC+.

"Our annual average forecasts are now $69/66 for Brent/WTI in 2025 and $62/59 in 2026. We no longer forecast a price range, because price volatility is likely to stay elevated on higher recession risk," the investment bank's analysts wrote in a note.

Global benchmark Brent slipped 0.41% to $69.85 a barrel, while U.S. West Texas Intermediate futures were 0.45% lower at $66.65 per barrel.

—Lee Ying Shan

The biggest winners and losers in Europe as Trump announces sweeping tariffs

Global markets, businesses and long-standing geopolitical relationships were thrown into disarray on Thursday, the day after U.S. President Donald Trump's tariff policy — and Europe was not spared from the chaos.

The European Union has been hit with 20% duties, while the U.K. was hit with a lower 10%, benefiting from its more balanced U.S. trade relationship. All eyes will now be on how far policymakers will go in their response, and how deeply the conflict can escalate.

Most analysts agree that, from an economic perspective, there are few — or perhaps no — economic winners from the expected slowdown in growth and the fracturing of trade ties.

Some bright spots nevertheless emerged among European assets on Thursday — as well as some deeply negative ones.

Read the full story here.

— Chloe Taylor, Jenni Reid, Sam Meredith

Eight OPEC+ producers accelerate crude oil output hikes, pushing oil prices down 6%

Eight key OPEC+ producers on Thuesday agreed to raise combined crude oil output by 411,000 barrels per day, speeding up the pace of their scheduled hikes and pushing down oil prices.

The Ice Brent contract with June delivery was trading at $70.50 per barrel at 1:32 p.m. London time (8:32 a.m. ET), down 5.94% from the Wednesday close. The front-month May Nymex WTI contract was at $67.11 per barrel, 6.41% lower.

Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman met virtually to review global market conditions and decided to raise collective output by 411,000 barrels per day, starting in May. The group was widely expected to implement an increase of just under 140,000 barrels per day next month.

The May hike agreed on Thursday is "equivalent to three monthly increments," OPEC said in a statement, adding that "the gradual increases may be paused or reversed subject to evolving market conditions.

Read the full story here.

— Ruxandra Lordache