Tariff Announcements - Former President Donald Trump announced new tariffs, including a 100% tariff on imported branded and patented pharmaceutical products, a 50% tariff on kitchen cabinets and bathroom vanities, a 30% tax on upholstered furniture, and a 25% levy on heavy trucks, effective October 1st [2][3][4] Pharmaceutical Sector Impact - Asian pharmaceutical stocks experienced declines, with Japan's Topix pharmaceutical index down 1% to 1.2%, and South Korea's SK Biopharmaceuticals shares falling 2.7% to 3.6% [3][4] - In India, the Nifty Pharma index plunged 1.81% to 2.45%, with Sun Pharma losing 2% to 2.55% and Wockhardt tumbling over 9% [4] - European pharmaceutical shares had a muted reaction, with Novo Nordisk slipping 1.9% to 3.49%, while Novartis stated the tariffs would have "no impact" due to a $23 billion investment in U.S. infrastructure [5] U.S. Pharmaceutical Companies - American pharmaceutical companies saw gains, with Eli Lilly rising 0.9% to 1.3% and Pfizer adding 0.2%, benefiting from the 100% tariff on imported drugs [6] Home Goods Sector Reaction - The home furnishings sector reacted negatively, with RH shares falling 2.6% to 5.4% and Wayfair initially slipping 3.5% to 6% but later recovering to a 0.9% gain [7][8] - American-based furniture manufacturers like La-Z-Boy and Ethan Allen Interiors saw gains due to the tariffs [8] Heavy Trucks Sector - The 25% tariff on heavy truck imports benefited American truck maker Paccar, whose shares surged 5% to 6%, while European counterparts like Daimler Truck and Traton saw declines [9] Broader Market Reaction - Despite the tariff news, the broader U.S. markets showed resilience, with the Dow Jones Industrial Average gaining 369 points (+0.8%) and the S&P 500 rising 36 points (+0.56%) [11] - The overall market reaction was described as "modest," indicating that markets have adapted to tariff announcements over time [11][12]

Group 1 - President Trump announced a 25% tariff on all heavy trucks manufactured outside the U.S., effective October 1, 2025, aimed at protecting domestic industry [2][9] - Companies like PACCAR Inc. and Daimler Truck Holding could be directly impacted by these protectionist measures [2] - The new tariffs may exacerbate existing trade frictions between the U.S. and China, despite the Chinese Premier's recent call for stable U.S. ties [3][9] Group 2 - Australian miner Lynas Rare Earths Ltd is on track to record its strongest quarter of market gains in nearly a decade, benefiting from escalating US-China trade tensions [4][9] - The financial markets are experiencing significant shifts, with bank reserves at the Federal Reserve falling below $3 trillion, indicating a notable liquidity drain [5][9] Group 3 - Economic growth in EBRD countries is edging higher, but the looming threat of tariffs presents a significant headwind for these emerging economies [6][9]