Despite the latest trade policy from the White House, European stocks finished higher Friday. The Stoxx 600 index rose 0.8% with the majority of major country benchmarks in green. However, pharmaceutical stocks were the exception to this. The sector traded nervously after Trump confirmed that the US will apply a 100% tariff on imported medicines starting on October 1st. He added that companies breaking ground on U.S. factories would be spared from the measure. Shares of Novo Nordisk, Zealand Pharma, and Orion all fell on the news. Despite this, firms could avoid a major hit if they continue with US-based production.
Trump also stated that heavy trucks imported into the US will face a 25% tariff starting next month. This adds another level of uncertainty into the current markets and global trade as a whole. In response, the EU stated that it may slap tariffs of up to 50% on Chinese steel to show Trump that it can respond with something that will affect America. Overall, while Europe’s markets closed broadly higher, the day’s moves reflected investors trying to balance optimism with a new batch of tariff battles and effects on certain sectors.
Article: Europe markets Sept. 26: Trump's 100% pharma tariffs, FTSE 100
5 comments:
Markets may be holding up for now, but these new tariffs highlight just how fragile investor sentiment is. Pharma stocks show the risk of policy-driven shocks, and the EU’s potential countermeasures suggest this could escalate into a broader trade fight.
It will be interesting to see how the financial markets respond if or when these tariffs get suspended, lifted, or increased. The US has been striking up partnerships in Europe in other sectors like Tech, so I would imagine some sort of deal will be established in the Pharma sector.
I did a very similar article as well and I am really interested to see how the markets hold up with this looming over their head. The 25% tariff on heavy trucks will play a huge role in that market as well and wonder how it will be affected.
Tariffs on medicine feel like a risky move. It’s no surprise pharma stocks are the ones feeling the pressure.
I am curious to see how the tariff pressure on the Pharma sector will have an overall effect on the financial market. This, as well as the 25% tariff placed on heavy truck imports could be a major factor in market moves.
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