From Yahoo Finance: 2025-04-02 23:53:00

Drugmaker stocks saw a temporary boost as Trump spared pharmaceutical products from reciprocal tariffs. U.S. drugmakers like AbbVie and Johnson & Johnson saw a 2% increase, while Indian and European drugmakers also rose. Despite the reprieve, worries persist as Trump plans separate tariffs targeting the pharma sector and uncertainty looms.

A U.S. official mentioned the possibility of separate tariffs targeting the pharmaceutical sector, causing concern within the industry. Trump highlighted the need to reshore pharmaceutical manufacturing, emphasizing the sector’s importance. Analysts predict ongoing uncertainty regarding tariffs could impact drugmakers and their operations in the future.

Trump’s executive order listed pharmaceuticals as a sector that could be subject to investigation under the U.S. Trade Act. This could lead to an additional $45 billion in import costs for the pharma industry, affecting manufacturing costs. Companies like Biogen, Amgen, AbbVie, and Merck are among those with significant exposure to potential tariffs, while medical devices and diagnostics equipment face uncertainty.

Medical device industry group AdvaMed warned that the tariffs could lead to cuts in research and development spending, impacting the U.S.’s position as a leader in medtech innovation. Shares in companies like GE Healthcare and DexCom fell about 6%, indicating concerns about the potential impact of tariffs on the medical device industry.

Read more: Pharma stocks survive market rout on tariff exemption, but uncertainty continues