Mesoblast Limited

 Kalkine’s Global Tariff Report delivers objective, data-driven insights into key global sectors impacted by tariff fluctuations. It assesses how these changes influence equity valuations across affected industries, with a focus on trade-sensitive sectors that often attract increased investor attention during times of tariff-related uncertainty. The report also highlights defensive and countercyclical segments that tend to show resilience—or even outperformance—amid disruptions in global trade dynamics.

As illustrated in the table below, several key sectors in different countries are directly impacted by the recent tariff announcement from President Trump.

Key Highlights 

Latest Key Developments (as of 11 May 2026)  

Australia

1. Temporary U.S. Global Tariff Still Applies, Though Legal Challenges Intensify: Australia continues to face a temporary ~10% U.S. import surcharge introduced after the earlier “Liberation Day” reciprocal tariffs were invalidated by U.S. courts. However, fresh legal rulings in May 2026 have again challenged the legality of these tariffs, creating uncertainty over whether the current 10% regime—or a possible increase to ~15%—will remain in force.
2. Sectoral Tariffs and New Investigations Continue to Pressure Exporters: Australia still faces elevated U.S. tariffs on steel, aluminium, and copper products, while additional investigations into pharmaceuticals, machinery, and medical equipment continue to raise the risk of further trade restrictions. These measures are sustaining uncertainty for Australian exporters despite broader legal setbacks to Trump-era tariff policies.

Canada

1. USMCA-Compliant Goods Remain Largely Protected Despite Broader Tariff Regime: Following multiple U.S. court rulings against broad reciprocal tariffs, Canada has largely avoided the full impact of Trump’s tariff escalation because USMCA-compliant goods continue to receive exemptions from the temporary Section 122 global tariff regime. However, non-compliant goods still face additional duties.
2. USMCA Review and Renegotiation Risks Continue to Build: Trade uncertainty remains elevated ahead of the July 2026 USMCA review process. The Trump administration continues to push for stricter rules around autos, steel, aluminium, labour enforcement, and rules of origin, while repeatedly signalling dissatisfaction with North American trade balances. This has raised concerns about tougher tariffs or structural revisions to the agreement.
3. Sector-Specific Tariffs Continue Despite Broader Relief: Although many broad tariffs were diluted after court interventions, Canada still faces significant U.S. duties on steel, aluminium, autos, and selected industrial goods. Canada has maintained targeted countermeasures in response, while businesses continue seeking refunds for tariffs paid under earlier emergency measures.

India

1. Interim Trade Framework Reduced Earlier Tariff Burden: The U.S. and India finalized a February 2026 interim trade framework that reduced earlier elevated tariffs on Indian exports to around ~18%, replacing prior emergency tariffs that had reached much higher levels during the 2025 escalation.
2. Court Rulings and Legal Challenges Provide Additional Relief: Several Trump-era reciprocal tariffs were subsequently struck down or challenged by U.S. courts, significantly easing pressure on Indian exports. The latest May 2026 court ruling against the 10% global tariff has further increased uncertainty over the future structure of U.S. tariff policy toward India.
3. Policy Uncertainty Remains Despite Trade Progress: While India has benefited from tariff reductions and ongoing trade negotiations, uncertainty remains high as the Trump administration continues exploring alternative legal mechanisms for tariffs, including possible increases toward ~15% under Section 122 authority. Discussions toward a broader Bilateral Trade Agreement (BTA) are ongoing.

China

1. Tariffs Remain Elevated Despite Partial De-escalation: U.S.–China tariffs remain substantially higher than pre-2025 levels despite temporary reductions agreed during negotiations. While some broad global tariffs were challenged in court, China-specific tariffs imposed under separate national security and trade statutes continue to remain in force.
2. Trade Conflict Increasingly Focused on Technology and Strategic Industries: The dispute has expanded well beyond conventional goods trade into semiconductors, AI technologies, electric vehicles, batteries, and critical minerals. Export controls, investment restrictions, and supply-chain security measures now form a central part of the broader U.S.–China economic rivalry.
3. Geopolitical Risks Continue to Threaten Further Escalation: Ahead of potential Trump–Xi discussions, tensions remain elevated. The U.S. has threatened additional tariffs linked to geopolitical and national security concerns, while China continues to pursue retaliatory investigations and countermeasures tied to U.S. trade and technology restrictions.

European Union

1. 15% Tariff Framework Continues to Shape EU–U.S. Trade: The U.S. continues to apply an approximate ~15% tariff framework on many EU exports under a broader transatlantic trade arrangement. In exchange, the European Union has committed to lowering tariffs on several U.S. goods, helping stabilize—but not fully normalize—trade relations.
2. High Sectoral Tariffs Continue to Pressure Key Industries: Despite the broader agreement, EU exporters still face elevated tariffs on steel, aluminium, and certain industrial products. These targeted duties continue to weigh heavily on European manufacturing sectors and remain a major source of friction in EU–U.S. trade relations.

Australia’s external sector showed mixed performance in early 2026, reflecting softer trade momentum and persistent external imbalances. The country recorded a trade deficit of AUD 1.84 billion in March 2026, reversing from a surplus of AUD 5.03 billion previously, as imports climbed to a record AUD 45.77 billion while exports eased to AUD 43.93 billion. The current account deficit widened to AUD 21.09 billion in December 2025, equivalent to 2.9% of GDP, highlighting continued pressure from weaker net exports and income outflows. Despite this, Australia’s terms of trade improved slightly to 117 points in March 2026, supported by relatively resilient commodity prices. External debt increased to a record AUD 2.75 trillion, while capital inflows moderated sharply to AUD 8.03 billion in December 2025 from AUD 35.97 billion previously. Foreign direct investment remained comparatively strong at AUD 81 billion in 2024, indicating sustained long-term investor confidence. On the tourism front, international arrivals rebounded strongly to over 943,000 visitors in February 2026, reflecting continued recovery in travel demand.

Amid elevated Market Volatility and Tariff pressures, Mesoblast Limited (ASX: MSB) stands out as a defensive pick within the Healthcare sector, supported by rigorous fundamental and technical research.

Section 1: Company Overview and Fundamentals Insights

Company Overview: Mesoblast Limited (ASX: MSB) is engaged in developing allogeneic (off-the-shelf) cellular medicines for the treatment of severe and life-threatening inflammatory conditions. Using its proprietary mesenchymal lineage cell therapy technology platform, the company has established a broad portfolio of late-stage product candidates. The company is also listed on NASDAQ (MESO).

Kalkine’s Global Tariff Report covers the Investment Highlights, Management Insights, Key Financial Metrics, Risks, and Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~44.09% of the total shareholding. G to the Fourth Investments LLC, and George (Gregory) hold maximum stakes of 10.49% and 9.91%, respectively. 

1.4 Key Metrics: MSB’s quick ratio improved to 1.41x in H1FY26, up from 0.63x in H1FY25. Below is captured other metrics:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Business Updates:

2.2 H1FY26 Results Highlights (for the 06 months ended 31 December 2025): Below mentioned are some key financial highlights:  

2.3 Historical Financial Trend

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock has decreased by ~5.66% in the last one month, and over the past six months, stock has decreased by ~12.66%. The stock has a 52-week low and 52-week high of AUD 1.527 and AUD 3.310, respectively. The stock is currently trading below the midpoint of its 52-week trading range. MSB was last covered in a report dated ’19 September 2025’.

4.2 Fundamental Valuation and Stock Recommendation

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance. 

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 11 May 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above. 

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.