(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

*

FTSE 100 down 0.7%, FTSE 250 down about 1%

*

Healthcare stocks drop after Trump's drug price cut

letters

*

Intertek Group ( IKTSF ) falls after missing revenue growth

expectations

*

Melrose up after beating operating profit estimates

Aug 1 (Reuters) - British equities slipped on Friday,

pressured by healthcare shares, as investors woke up to U.S.

President Donald Trump's fresh levies on dozens of countries and

demands to lower prescription drug prices.

The blue-chip FTSE 100 was down 0.7% as of 0915 GMT,

on track to snap a six-week winning streak.

The domestically focused midcap FTSE 250 fell nearly

1% and headed for its second straight weekly decline.

Late on Thursday, Trump slapped steep tariffs on exports

from dozens of trading partners including Canada, Brazil, India,

Taiwan and Switzerland, pressing ahead with his plans to reorder

the global economy.

British healthcare stocks dropped the most, down

2.3%, after Trump sent letters to the leaders of 17 major

pharmaceutical companies on Thursday, including AstraZeneca ( AZN )

and GSK, outlining how they should slash U.S.

prescription drug prices.

AstraZeneca ( AZN ) shed 3.4%, while GSK slipped

1.3%.

Industrial Support Services sector fell 2.1%

after Intertek Group ( IKTSF ) missed its half-year organic

revenue growth. The British product testing firm fell the most

in the FTSE 100, down 7.7%.

British Airways owner IAG dropped 2.1% after the

airline group said it expected a slight rise in costs linked to

air traffic control issues.

Watches of Switzerland ( WOSGF ) was the biggest drag on the

FTSE 250, down 8%, after the U.S. imposed a 39% tariff on Swiss

imports.

Conversely, Melrose Industries rose 6.5% to the top

of the benchmark index, after the defence company beat operating

profit expectations on strong demand.

Pearson rose 4.5% after the British education

company forecast stronger growth in the second half.

Meanwhile, 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.

However, 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.

Also, data showed on Friday that British house prices rose

slightly faster than expected in July.