European stocks fall on U.S. tariff proposals; Akzo Nobel plunges

European stocks finished lower on Wednesday, as investors weighed U.S. proposals for sweeping new tariffs on 60 countries.

The pan-European Stoxx 600 index ended the session 0.5% down, with most regional sectors closing in the red, and major bourses in London, Paris, Frankfurt and Milan all lower.

Akzo Nobel closed the day 17.2% lower after a proposed takeover by Nippon Paint and Sherwin-Williams fell through.

Akzo Nobel, whose brands include Dulux, had previously rejected a joint cash takeover offer worth 73 euros ($85) per share.

Akzo Nobel said at the time that the offer "did not come close" to adequately reflecting its value and long-term prospects, adding that the plan offered "insufficient deal certainty" over the separation of the business, with its shareholders "not adequately safeguarded."

On Wednesday, the company took note of a statement from Nippon Paint and Sherwin-Williams confirming that they were no longer interested in pursuing a public offer.

In other corporate news, Zara owner Inditex updated investors on its fiscal first-quarter earnings on Wednesday. The stock advanced more than 1%.

Sales at the Spanish retail group grew 5.8% from the previous year, coming in at 8.7 billion euros ($10.1 billion) to meet analysts' expectations. Net profit jumped 5.4% year-on-year to reach 1.38 billion euros, in line with estimates.

Shares in Partners Group plunged 16.3% after the Zurich-headquartered global private markets giant said it was restricting investor withdrawals in one of its private equity funds, mirroring recent redemption pressures in the U.S. private credit space.

Meanwhile, the Office of the U.S. Trade Representative has floated additional tariffs of up to 12.5% on 60 trading partners over their alleged failure to ban goods made with forced labor. The economies in line to be targeted by the measures include China, the European Union and Japan.

"The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field," said U.S. Trade Representative Jamieson Greer.

An EU spokesperson described the reasoning behind the latest barrage of U.S. tariffs as "unjustified."

"On the EU side, we are on track to ensure implementation of our Joint Statement tariff commitments by the end of June," they added in comments reported by Reuters.

Investors are also continuing to monitor developments in the U.S.-Iran war after tensions escalated overnight, with Washington accusing Tehran of launching fresh attacks despite a ceasefire remaining in place.

President Donald Trump said in an interview with the New York Post's "Pod Force One" podcast that Iran had "agreed" not to have a nuclear weapon, but added that the government in Tehran could still "change their mind."

Israeli Prime Minister Benjamin Netanyahu told CNBC's Sara Eisen that he and and Trump have "tactical disagreements" over the Iran war, following reports of a widening rift between the two leaders. In a wide-ranging interview, Netanyahu also said "alternative routes" to the Strait of Hormuz are being developed.

On Wall Street, U.S. equities slipped. The Dow Jones Industrial Average last seen 0.8% lower, with S&P 500 down 0.6%, while the Nasdaq was more than 0.8% lower.

— CNBC's Anniek Bao contributed to this report.