European stocks closed higher on Friday despite heightened trade tensions, after U.S. President Donald Trump confirmed sweeping new tariffs on pharmaceutical imports.
The pan-European Stoxx 600 index rose 0.8% to 554.52, with all major regional bourses in positive territory. France’s CAC 40 gained 1%, Germany’s DAX advanced 0.9%, and Spain’s IBEX 35 outperformed with a 1.3% rally.
Healthcare sector stalls
The Stoxx Europe 600 Healthcare index closed flat after a volatile session. The muted performance came as Trump announced that, starting October 1, medicine imports to the U.S. will be subject to 100% tariffs. Companies will only be exempt once they begin building manufacturing facilities inside the U.S., Trump said.
Previously, Trump had threatened levies of up to 200% on imported pharmaceuticals.
Denmark’s Zealand Pharma slid 2.4%, Novo Nordisk dropped 3.5%, and Finland’s Orion fell 1.9%.
Still, analysts urged caution against overreacting. JPMorgan strategists wrote in a note that the tariffs should be “largely avoidable with U.S.-based manufacturing buildout” and projected a “very manageable overall impact” on large-cap pharma stocks.
Wider trade tensions
The tariffs extend beyond healthcare. Trump also announced 25% tariffs on heavy truck imports beginning next month. Meanwhile, European officials are weighing their own measures: German daily Handelsblatt reported that the EU is preparing tariffs of up to 50% on Chinese steel.
Stock movers
Outside healthcare, Danish renewables group Orsted fell 2% following a Financial Times report that the troubled firm is in talks to sell a stake in its Hornsea 3 wind farm in the U.K. to U.S. asset manager Apollo.
Despite sector-specific headwinds, broad European equity sentiment remained upbeat, with investors focusing on resilient economic signals and selective corporate catalysts.
