European stocks close 2.7% lower as key sectors are upended after Trump tariffs

European stock markets closed lower on Thursday, following U.S. President Donald Trump's stronger-than-expected trade tariffs announcements.

The regional Stoxx 600 index ended down around 2.7%. Big retail names with global supply chains suffered, with German sportswear retailer Adidas falling 11%.

Shipping giant Maersk, widely viewed as a barometer for world trade, was 9.5% lower.

The Stoxx Autos index dropped 3.9% as Trump's 25% tariffs on imported vehicles to the U.S. took effect and added to existing new duties on steel and aluminum.

Other sectors deeply in the red included banks, down 5.6%, and technology, lower by 4.5%. Utilities stocks, traditionally a defensive play in times of market turmoil, rose nearly 3%.

Trump on Wednesday signed an aggressive and far-reaching "reciprocal tariff" policy, with his plan setting a 10% baseline tariff across the board.

The president announced a slew of "reciprocal tariffs" on more than 180 countries and territories, including a 20% tariff on goods being imported from the EU and 10% on goods from the U.K.

The U.K.'s FTSE 100 was down 1.6%, with France's CAC 40 and Germany's DAX posting deeper losses of 3.3% and 3.1%, respectively.

The U.S.' biggest economic rival China was hit with a new 34% tariff rate which will come on top of the existing 20% tariffs on U.S. imports from China, taking the effective total tariffs to 54%.