FTSE 100 pharma giants GSK and Astrazeneca may have escaped the worst of US President Donald Trump’s tariffs, according to a City broker.

Pharmaceutical goods appear to be exempt from higher-rate tariffs introduced by President Trump in his Rose Garden ‘Liberation Day’ address on Wednesday, but there is still uncertainty about the impact on the sector. 

This is according to a new research note from Shore Capital, which has spoken to FTSE 100-listed pharmaceutical giants GlaxoSmithKline (GSK) and Astrazeneca about their understanding of the tariffs. 

The investment group has confirmed that GSK expects no changes to its outlook based on the announcement, while Astrzeneca is operating on the basis that essential medicines will be exempted from the levies. 

Astrazeneca has stressed that it will be “actively seeking to mitigate any impact” of the tariffs. 

Dr Sean Conroy, healthcare equity research analyst for Shore Capital, said: “Last night President Trump outlined broad reaching trade tariffs, but based on a clarifying Fact Sheet produced by The White House, it would appear that pharmaceutical goods imported into the  US will be exempt from higher-rate Reciprocal Tariffs, at least for now.

“It is still somewhat unclear whether the broader reaching 10% baseline tariffs could still be levied against imported drugs and vaccines, in our view.”