Wall Street inched higher early Friday after U.S. President Donald Trump announced new tariffs, including a 100% import tax on pharmaceutical drugs, set to take effect next week.

Futures for the S&P 500 and Nasdaq gained 0.1% each before the bell, while Dow Jones Industrial Average futures rose 0.2%. Trump cited national security and other reasons for tariffs on foreign-made furniture, cabinetry, and heavy trucks, claiming these products were harming U.S. producers.

Shares of home furnishing companies fell sharply on the news, with Wayfair and Williams-Sonoma losing nearly 3% each, and RH sliding 5%. Meanwhile, U.S. truck manufacturer Paccar surged 6%, despite most heavy trucks being made domestically or in Canada and Mexico.

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Dow component Boeing Co. rose over 3% after reports indicated federal safety regulators would ease oversight of the aircraft manufacturer.

Investors also awaited U.S. consumer spending data, which includes the Federal Reserve’s preferred inflation measure. Recent reports suggesting a stronger-than-expected U.S. economy have pressured stocks, as stronger growth could reduce the likelihood of multiple Fed interest rate cuts. Last week, the Fed delivered its first rate cut of the year, with expectations of further reductions driving Wall Street’s record gains since April.

European markets traded higher midday, with Germany’s DAX up 0.7%, France’s CAC-40 rising 0.8%, and Britain’s FTSE 100 climbing 0.5%.

Asian markets, however, largely fell. Japan’s Nikkei 225 closed 0.9% lower at 45,354.99, weighed down by losses in Sumitomo Pharma (down 3.5%) and Chugai Pharmaceutical (down nearly 5%). Tokyo-area inflation rose 2.5% year-on-year in September, below expectations of 2.8%, but still above the Bank of Japan’s 2% target.

South Korea’s Kospi dropped 2.5% to 3,386.05 amid ongoing U.S.-South Korea tariff negotiations. In China, Hong Kong’s Hang Seng fell 1.4% to 26,128.20, while the Shanghai Composite lost 0.7% to 3,828.11. Australia’s S&P/ASX 200 gained 0.2% to 8,787.70, while India’s BSE Sensex dropped 0.9%, and Taiwan’s Taiex declined 1.7%.

Stephen Innes of SPI Asset Management noted, “Tariffs aimed at pharma may be targeted, but they ripple through investor psychology like a pebble dropped into a still pond. And with valuations stretched, every tremor feels magnified.”

Investors will continue monitoring U.S. inflation, labor market data, and global trade developments for clues on future market trends.