Shares of major European pharmaceutical companies fell sharply on Friday, following U.S. President Donald Trump’s announcement that all imported medicines into the United States will be subject to a 100% tariff starting October 1.
The sudden policy declaration sparked volatility across European markets, particularly in the healthcare sector. Zealand Pharma shares slid 2.9%, Novo Nordisk dropped 1.6%, and Orion Corporation of Finland fell 1.9% in late trading.
The STOXX Europe 600 Health Care Index witnessed choppy movements throughout the session, alternating between gains and losses as investors reacted to the potential impact on pharmaceutical exports to the U.S.—one of the world’s largest drug markets.
Despite the sell-off in healthcare stocks, broader European equities ended higher, with the overall STOXX 600 Index up 0.5%, as traders weighed the broader implications of the White House’s latest trade policy decisions. Most sectors finished in positive territory.
Analysts told CNBC that the impact of the new tariffs could be partially mitigated if pharmaceutical manufacturers accelerate efforts to expand production capacity within the United States.
In a research note, JP Morgan stated, “The 100% import tariff on U.S. pharmaceuticals can largely be avoided through establishing domestic manufacturing facilities.”
The move marks another escalation in the Trump administration’s aggressive trade agenda, which has targeted multiple sectors in an effort to boost domestic production and reduce dependency on foreign imports.
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