UPDATE 2-European shares suffer as trade jitters, weak data weigh

* STOXX 600 down 1.6 pct to 2-week low

* Banks, miners, tech lead sectoral fallers

* Reckitt gains after pulling out of Pfizer race(Adds details, closing prices)

By Helen Reid and Danilo Masoni

LONDON, March 22 (Reuters) - Concerns about trade sentEuropean shares tumbling on Thursday as the United Statesprepared to announce hefty tariffs on Chinese imports, withbanks, basic resources stocks and tech the worst-performing.

U.S. President Donald Trump signed a presidential memorandumthat could impose tariffs on up to $60 billion in Chineseimports.

Separately, the European Union secured an exemption fromU.S. tariffs on steel and aluminium imports set to come intoforce on Friday.

The pan-European STOXX 600 index fell 1.6 percentto its lowest level in more than two weeks, while Germany'sexporter- and industrials-heavy DAX fell 1.7 percent.

The mood was also dampened by a weaker than forecastbusiness activity survey. Euro zone businesses rounded off thefirst quarter of 2018 with their slowest growth in over a year,much weaker than expected, as new business took another hit froma stubbornly strong euro.

"Business sentiment has to be monitored carefully in thecoming months, especially if trade tensions intensify, becauseany further significant deterioration in confidence indicatorsmight signal that the balance of risks starts shifting to thedownside," said UniCredit head of macro research Marco Valli.

Banks, which have been penalized recently weaker thanexpected macro economic data in Europe, were among the leadinglosers on Thursday. Their sectoral index fell 2.5percent to an 11-month low. The sector also suffered after theU.S. Federal Reserve surprised the market with less hawkish rateguidance.

Deutsche Bank declined 2.9 percent, still weakafter sharp losses in the previous session when the bank'sfinance chief said a strong euro and higher funding costs wouldhave a 450 million euro impact on revenues.

Commerzbank tumbled 6.2 percent after a downgradefrom Kepler Cheuvreux.

Basic resources stocks led sectoral losers, down 2.9percent after copper reversed earlier gains to fall tothree-month lows as escalating concern about U.S. plans to levyduties on Chinese imports.

Tech stocks < .SX8P> 2.1 as tariffs on China were expectedto target the high-tech sector.

Chipmakers ams, STMicro, and Infineon, which have led the recent tech stock rally and arefirmly embedded in international supply chains, all fell. .

Deal developments and earnings continued to drive Europeanstock moves.

Reckitt Benckiser shares shone, jumping 4.8 percentafter the British consumer products firm pulled out of thebidding for Pfizer's consumer health unit.

The move reflected relief in the market that Reckitt wouldavoid over-levering or issuing shares for the acquisition.

GlaxoSmithKline, now seen as having a better chanceof buying the Pfizer business, declined 1.7 percent.

Disappointing 2017 results sent United Internetshares down 9.5 percent. Subsidiary Drillisch fell 5.7percent.

Also in tech, Ingenico suffered a 3.4 percent lossafter Kepler Cheuvreux downgraded it, saying full-year guidancenow looked "challenging".

Tech and engineering consultancy Altran fell 3.3percent after launching a share capital increase of 750 millioneuros.

The world’s no.2 cement maker Heidelberg Cementfell 2.3 percent after it announced a dividend slightly short ofanalysts’ average expectations.

Bayer fell 1.4 percent after Australian and EUregulators approved the firm's takeover of Monsanto. "Halfwaythere," wrote UBS analysts, adding all eyes were now on the U.S.Department of Justice, yet to approve the deal.

Overall, with results season drawing to a close, analystswere becoming more negative on the earnings outlook for Europeanstocks.

(Reporting by Helen Reid and Danilo Masoni, Editing by RichardBalmforth and Hugh Lawson)