Trump’s 100% Drug Tariff Hits Pharma Stocks in Europe and Asia
Shares of major European drugmakers fell on Friday after U.S. President Donald Trump announced new tariffs, including a 100% duty on branded pharmaceuticals.
European Pharma Stocks Slide
On the Tradegate platform, Novo Nordisk, Roche, Novartis, and AstraZeneca dropped between 1.2% and 2.4% in early trading. The losses came after Trump unveiled his latest tariff package, which takes effect next week.
The new measures include 100% tariffs on branded drugs and a 25% levy on heavy-duty trucks. Trump said the decision was meant to protect U.S. manufacturing and national security.
Tariffs Cloud Global Growth Outlook
This escalation follows earlier rounds of duties of up to 50% on key trading partners and targeted tariffs on steel and other imports. Analysts warn that the widening trade conflict is weighing on global growth prospects and increasing uncertainty for corporate investments.
The Federal Reserve has also noted that higher tariffs are contributing to rising consumer prices in the U.S.
Trade Partners React
Trump did not clarify whether the new duties will be added on top of existing tariffs. Trade agreements with Japan, the European Union, and the United Kingdom currently cap levies on certain products, including pharmaceuticals.
Tokyo said it was still reviewing the potential impact, while Australia criticized the move as “unfair” and “unjustified.”
Tariffs Extend Beyond Pharma
Alongside drug tariffs, Trump confirmed plans to revive the U.S. furniture industry. Starting October 1, the U.S. will impose a 50% tariff on imported kitchen cabinets and bathroom vanities and a 30% tariff on upholstered furniture. Trump said these steps were necessary to stop foreign “flooding” of American markets.
Pharma Stocks in Asia Also Drop
The tariff news also hit Asian pharmaceutical shares. Australia’s CSL dropped to a six-year low, Japan’s Sumitomo Pharma fell 3.4%, and indices tracking drugmakers in Hong Kong and India declined.
Trump added that the 100% tariff on branded or patented drugs will apply to all imports unless companies have already started building manufacturing plants in the U.S.
