Asia markets tumble as Trump imposes 100% tariff on branded drugs

September 26, 2025 (MLN): Asian markets fell on Friday after U.S. President Donald Trump revealed sweeping new tariffs on pharmaceuticals, trucks and furniture, rattling investor confidence and sending healthcare shares tumbling across the region.

In a post on Truth Social, Trump declared that starting October 1, all branded and patented pharmaceutical products entering the United States would face a 100% duty, unless the companies move drug manufacturing plants into the country.

The announcement triggered an immediate selloff in Asian pharmaceutical stocks. Japan’s Topix Pharma Index slid 1.47%, led by steep losses in Daiichi Sankyo, which fell 2.11%, and Chugai Pharmaceutical, which dropped 3.64%. Sumitomo Pharma extended its recent slump, plunging 5.33%.

South Korean drugmakers were also under pressure, with heavyweight Samsung Biologics declining 1.71% and SK Biopharmaceuticals losing 3.71%. In Hong Kong, health-tech firms were among the hardest hit, as Alibaba Health Information Technology dropped 2.92% and JD Health slipped 2.23%.

Trump further expanded the tariff plan by imposing a 25% levy on heavy trucks, a 50% tariff on kitchen cabinets, bathroom vanities and associated products, and a 30% charge on upholstered furniture.

Meanwhile, in a separate executive order, Trump approved a $14bn deal designed to keep TikTok operating in the United States.

Under the terms of the transaction, a new joint-venture company would take control of TikTok’s U.S. business, while ByteDance would retain less than a 20% stake. The agreement, however, still requires Beijing’s approval.

Despite the turbulence in the healthcare sector, Japan’s broader market was more resilient. The Nikkei 225 closed flat, while the Topix index gained 0.59% to reach a record high.

Investors also weighed fresh inflation data from Tokyo, where core inflation eased to 2.5% in September, undershooting forecasts of 2.8% and signaling a potential cooling trend in nationwide prices.

Elsewhere in Asia, South Korea’s Kospi dropped 2.02% while the smaller-cap Kosdaq retreated 1.57%. Hong Kong’s Hang Seng Index declined 0.86%, and mainland China’s CSI 300 ended flat. Australia’s S&P/ASX 200 hovered slightly below the flatline.

On Wall Street, the selloff in technology stocks deepened for a third consecutive session, fueled by rising U.S. Treasury yields.

The benchmark 10-year yield climbed to 4.2% after unemployment claims came in lower than expected, reinforcing concerns about a still-tight labor market.

Oracle sank 5% and Tesla fell 4%, dragging major indexes lower. The S&P 500 slipped 0.50% to 6,604.72, the Nasdaq Composite lost 0.50% to 22,384.70, and the Dow Jones Industrial Average shed 0.38% to finish at 45,947.32.

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