European chip stocks fall as tariffs take effect, with signs of more to come

Shares in European semiconductor companies fall after U.S. President Donald Trump's sweeping tariffs took effect, including 104% levies on China

Trump also said the U.S. would soon announce a "major" tariff on pharmaceutical imports, which was one of the exempted sectors with semiconductors

STOXX Europe Technology index .SX8P is down 2.1%, among the worst performers on the wider STOXX 600 .STOXX which falls 2.6%

"While semis weren't directly targeted in the latest U.S. tariff actions, the inclusion of previously exempt sectors like pharmaceuticals has clearly shifted sentiment," analyst Abed Jarad from mwb-research says

"The sell-off in EU semis stocks reflects growing concern that the sector could be drawn into the widening trade war," he says, noting European chipmakers are deeply exposed to global supply chains, particularly through ties with the U.S. and China

Jarad adds direct tariffs on semiconductors would increase costs, strain profitability, create operational and investment uncertainty and slow down innovation

STMicroelectronics STMPA.PA, BESI BESI.AS and ams Osram AMS.S slide between 1.9% and 6.2%

ASML ASML.AS and ASMI ASMI.AS slide between 1.7% and 3%, while Aixtron AIXGn.DE, Infineon IFXGn.DE and Siltronic WAFGn.DE fall 1.7% to 3.5%

Nordic Semiconductor NOD.OL and Soitec SOIT.PA fall 3.2%-4.3%