European banks faced continued declines in their stock prices on Friday due to a substantial sell-off in the market triggered by the imposition of tariffs by U.S. President Donald Trump. The banking index in the region dropped 3.3% to its lowest level since early February, following a 5.5% fall on Thursday. The cumulative losses over the past two days reached 8.5%, the highest in three years. Leading the losses were banks such as Italy's BPER Banca, Germany's Deutsche Bank, and Spain's Sabadell, all seeing a decrease of about 4.3%. Significant drops were also witnessed in banking stocks across the globe, with major Wall Street institutions like Goldman Sachs, Morgan Stanley, and JPMorgan experiencing declines of 7-9%, their largest in a day since 2020. In Japan, the financial shares index plummeted by 11% at one point on Friday.