Trump Signals Imminent Pharmaceutical Tariffs, Sending Global Markets Reeling

The proposed tariffs aim to repatriate drug manufacturing to the U.S., sparking warnings of investment shifts and supply chain disruptions in Europe and India.

Donald Trump announced that a major tariff on pharmaceutical imports will be unveiled soon, aiming to incentivize companies to relocate drug manufacturing to the United States.
Indian pharmaceutical companies, heavily reliant on U.S. exports for revenue, face significant risks, with major firms like Biocon and Lupin seeing sharp stock declines of up to 5%.
European pharmaceutical giants, represented by EFPIA, warned of a potential exodus of over €100 billion in planned R&D and manufacturing investments to the U.S. unless the EU enacts swift policy reforms.
Shares of major European drugmakers, including Novartis, Sanofi, and Bayer, fell sharply, with losses exceeding 5% in some cases, reflecting investor concerns over the impending tariffs.
The tariffs could disrupt global supply chains and impact the availability of medicines in both Europe and the U.S., as pharmaceutical companies reassess their production strategies.