(Reuters) -Healthcare shares led British equities lower on Friday, as U.S. President Donald Trump slapped fresh levies on dozens of countries and demanded lower prescription drug prices.
The blue-chip FTSE 100 fell 0.7%, its biggest drop in percentage terms in almost four months, and also snapped a six-week winning streak.
The domestically focused midcap FTSE 250 was down 1.2% on the day and posted its second straight weekly decline.
British healthcare stocks were down 1.4% a day after Trump sent letters to the leaders of 17 major pharmaceutical companies, including AstraZeneca and GSK, outlining how they should slash U.S. prescription drug prices.
AstraZeneca fell 1.9% and GSK was 1.5% lower.
Weaker than expected U.S. jobs data added to downward pressure on global shares after Trump’s latest tariff salvo, which included steep levies on exports from dozens of trading partners including Canada, Brazil, India, Taiwan and Switzerland.
Watches of Switzerland, which sells brands including Rolex in the United States, fell 6.8% after the U.S. imposed a 39% tariff on Swiss imports.
While a trade deal with the U.S. has largely insulated British stocks from the tariff turmoil, investors are worried about the broader fallout from the trade wars and a cooling UK jobs market.
Britain said the European Union will remove tariffs on key steel products under a quota system from Friday as part of a reset of ties and a recent deal to ease trade barriers.
London is yet to conclude negotiations with the U.S. after both sides agreed in May to work toward removing tariffs on British steel exports.
Meanwhile, the United Kingdom’s Supreme Court overturned a landmark ruling on car finance commission after an appeal by two lenders in a judgment that is set to ease the fears of banks about the extent of a redress scheme.
U.S.-listed shares of Lloyds Banking Group jumped 3.6%. At the UK market close, the stock was down 2.6%.
British Airways owner IAG fell 1.7% after the airline group said it expected cost rises linked to air traffic control issues.
Pearson rose 6.1% after the education company forecast stronger growth in the second half.
(Reporting by Sanchayaita Roy, Twesha Dikshit and Sruthi Shankar in Bengaluru; Editing by Sahal Muhammed, Kirsten Donovan)
