European stocks declined as President Donald Trump's latest tariff moves sowed fresh confusion over the outlook for global trade. The market reaction reflects growing investor anxiety about the unpredictable nature of trade policy and its potential impact on economic growth across the continent.

Shares in Novo Nordisk A/S slumped after its next-generation obesity shot drug fell short of Eli Lilly & Co.'s rival blockbuster in a trial. The disappointing clinical results sent Novo's stock tumbling, highlighting the competitive pressures in the lucrative weight-loss medication market where Lilly has gained significant ground.

The dual pressures of trade uncertainty and pharmaceutical sector setbacks underscore the fragile sentiment in European markets. Investors are grappling with both macroeconomic policy shifts and company-specific challenges, creating a volatile trading environment that could persist until clearer signals emerge on both fronts.