Trump‘s Proposed Drug Tariffs Expected to Have Limited Impact on Major Pharma
WASHINGTON – Former President Donald Trump’s recent proposal to impose tariffs on pharmaceutical imports is anticipated to have a minimal effect on the largest drugmakers, as many have already begun establishing manufacturing facilities within the United States, according to a Bloomberg report. The plan, details of which remain largely undefined, has prompted some uncertainty in European markets, though initial reactions have been muted.
The move comes as major pharmaceutical companies – including Merck, Novo Nordisk, adn Eli Lilly – have initiated construction of U.S.-based factories since 2023, aiming to secure domestic supply chains and bolster production of key medications in areas like cancer, diabetes, and immunology.This proactive shift suggests the industry is already preparing for potential trade disruptions.
While Trump’s comments have raised concerns, analysts suggest the actual impact may be “vague or almost unclear,” according to Jared Holtz, a healthcare specialist at Mizuho Securities. Uncertainty remains regarding whether countries with existing trade agreements with the U.S. will be exempt from the proposed tariffs.
The European union has affirmed a trade agreement with the U.S.that limits tariffs on drugs, semiconductors, and wood exports from the region to a maximum of 15%. Despite this,European pharmaceutical stocks experienced limited movement on September 26th,with Novo Nordisk briefly falling 3.1%.
