Nikkei was down 0.6%, Hang Seng Index was off 0.5%, CSI300 blue-chip index dropped 0.3%, while MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1%

Shares in Asia dropped on Friday, with pharmaceutical companies hit after U.S. President Donald Trump unveiled a new round of tariffs and as traders pared bets of sharp U.S. rate cuts following stronger-than-expected economic data.

Shares of pharmaceutical companies across Asia declined in the aftermath, with Japan’s Topix pharmaceutical index last down 1.2%, while the Hong Kong-listed innovative drug index dropped 2%.

Shares in South Korean drugmaker SK Biopharmaceuticals slipped 3.6%, while Australian biotech firm CSL was down 1.5%.

Broader indexes in Asia were meanwhile in the red, with the Nikkei last down 0.6% while Hang Seng Index was off 0.5%.

CSI300 blue-chip index dropped 0.3%, and MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1%.

We were bracing ourselves for the sectoral tariffs on pharmaceuticals. I think the key thing is the details are still scant at this stage, but the tariffs seem to only apply to branded or patented drugs. So that’s quite important, particularly for India, said Khoon Goh, head of Asia research at ANZ.

But I think the initial knee-jerk reaction most likely would see probably a continuation of the equity market weakness that we’ve seen, as investors take a cautious approach, Goh added.

The announcements, made on Truth Social, did not include details about whether the new levies would apply on top of national tariffs or whether economies with trade deals such as the European Union and Japan would be exempted.

Washington’s trade deals with Japan, the EU, and Britain include provisions that cap tariffs for specific products such as autos, semiconductors and pharmaceuticals, which means the new higher national security tariffs likely will not raise them above agreed rates.