By Sukriti Gupta, Sanchayaita Roy and Shashwat Chauhan (Reuters) -European shares closed lower on Friday, as losses in banks and healthcare stocks weighed at the end of a week marred by U.S. President Donald Trump's tariff announcements,

The slouch was slight compared to the market reaction to Trump’s initial “Liberation Day” announcement of “reciprocal” tariffs on April 2.

The EU remains hopeful it will strike a deal to avoid steep levies Trump has threatened on its exports to the US.

BMW's CEO said on Friday he was optimistic that the European Union and the United States would soon reach a "manageable" agreement on auto import tariffs, potentially including a mechanism to offset imports with exports.

One-fifth of the EU’s exports are heading to the US. Tariffs on the carmaking sector hit the German economy the most, but potential tariffs on the pharmaceutical one could cost substantially to the Irish economy.

The European Union (EU) has said it hopes to agree a US tariff deal "in the coming days" that would avoid import taxes US President Donald Trump has threatened on its goods.

The European Union may be nearing a trade agreement with the United States but is struggling to obtain immediate tariff relief and a commitment not to introduce new measures, the head of the European Parliament's trade committee said on Wednesday.

The dollar rose and Commerzbank said since Trump is announcing the tariffs in increments, the market seemed to be coping better than it did in April—when steep levies were unveiled at once.