Pharmaceutical stocks fell on Thursday following reports of possible 100% tariffs by the Trump administration on certain drugs.
• Trump apparently plans 100% tariffs on certain drugs
• US pharmaceutical stocks under pressure
• Deals with the White House could provide protection
The US government under Donald Trump is apparently planning to introduce tariffs on certain medicines. As Investing.com reports, citing the Financial Times, the levies could be announced as early as this Thursday and would primarily affect companies that have not yet reached an agreement with the White House.
In US trading, the shares of large US pharmaceutical companies took different directions: Novo Nordisk ADRs ultimately rose by 1.34 percent to $36.97 on the NYSE, while Eli Lilly shares fell by 1.94 percent to $936.03. Johnson & Johnson and Pfizer lost 0.47 percent to $242.97 and 0.77 percent to $28.33, respectively. Merck & Co. was trading 0.14 percent higher at $121.01, while Moderna on the NASDAQ fell 1.66 percent to $49.20.
Trump is probably planning to implement threats from 2025
The planned tariffs implement a threat Trump made last year. At that time, he announced that he would impose tariffs of up to 100 percent on imports of branded and patented drugs unless manufacturers invest in building production facilities in the USA. According to Investing.com, the Financial Times further reports that tariffs will be capped for countries that have already reached agreements with the White House.
Strategic deals protect companies
The move is part of Trump’s broader strategy to encourage more investment and manufacturing in the US. Companies such as Pfizer, AstraZeneca and Novo Nordisk have already signed agreements with the White House and are therefore partially exempt from the planned taxes.
Analysts see the tariff threat as a potential short-term burden for US pharmaceutical companies. Nevertheless, strategic partnerships with the government, as in the case of Pfizer or Novo Nordisk, could protect companies in the long term.
Bettina Schneider, Benedict Kurschat, editorial team finanzen.net
By the way: Eli Lilly and other US stocks can even be traded on finanzen.net ZERO until 11 p.m. (without order fees, plus spreads). Open a depot now for free and secure a new customer bonus!
Selected leveraged products on AstraZeneca
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on AstraZeneca
The leverage must be between 2 and 20
Advertising
