The FTSE 100 showed minimal movement on Friday, finishing the day slightly higher, leaving it relatively unchanged for the week. This stability came in the wake of new tariff announcements from the United States. President Donald Trump unveiled extensive new tariffs that include a 100% duty on branded or patented pharmaceuticals set to take effect on October 1, unless manufacturers establish production facilities in the US. Additional tariffs include a 25% duty on imported heavy trucks, 50% on kitchen cabinets and vanities, and 30% on upholstered furniture, all commencing next week.
The announcement negatively impacted the UK pharmaceutical sector, which declined by 0.8%. AstraZeneca dropped by as much as 1.6%, hitting its lowest point since late July, while GSK fell by 1%. Despite these declines, analysts suggest the overall effect may be limited since major UK pharmaceutical companies have substantial operations in the US. For instance, AstraZeneca plans to invest $50 billion in the U.S. by 2030, highlighting the industry's trend toward expanding American-based production to offset trade-related challenges.
