LIVE MARKETS-200% pharma tariffs: "rhetoric"

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200% PHARMA TARIFFS: "RHETORIC"

Only a few months ago, a Trump threat of a 200% tariff would have unleashed chaos in markets, but traders are now accustomed to the U.S. president's "Art of the Deal" negotiating style.

That explains why European drugmakers are broadly unchanged after Trump threatened them with a levy of such magnitude.

Barclays notes the proposed 12-18 month transition period is a key reason for the muted reaction. This provides a significant "breather" for the sector, and could even be seen as a positive compared to other industries facing more immediate tariff risks.

"The investors will view it as rhetoric for now and do not expect large movement in shares," the UK bank writes.

Instead, any implementation is likely to be gradual and help catalyse the reshoring of drug manufacturing back to the U.S.

Meanwhile, shares in major European drug exporters AstraZeneca AZN.L, Roche ROG.S and Novartis NOVN.S were all hovering around parity.

(Danilo Masoni)

EARLIER ON LIVE MARKETS:

EUROPE BRACES FOR WORST EARNINGS IN FIVE QUARTERS CLICK HERE

BANKS DO THE HEAVY LIFTING; DAX, FTSE NEAR PEAKS CLICK HERE

EUROPE BEFORE THE BELL: TRADE DEAL AWAITED, FUTURES UP CLICK HERE

TRUMP TARIFF VOLLEYS MET WITH CAUTION, NOT CHAOS CLICK HERE