Trump announces pharmaceutical tariffs, causing initial drop but later rise in drugmaker stocks

From CNBC: 2025-04-09 15:12:00

President Donald Trump announced a pause on steep tariff rates, causing shares of drugmakers to rise. However, pharmaceutical stocks fell earlier due to plans for pharmaceutical-specific tariffs. U.S.-based companies like Eli Lilly, AbbVie, and others dropped initially but later turned positive. Trump aims to incentivize domestic manufacturing in the pharmaceutical industry, which has seen significant growth in imports. Wall Street analysts doubt the feasibility of reshoring production due to complex supply chains, potential cost increases, and disruptions to drug costs. House Democrats are urging protection of medical supply chains to prevent adverse impacts on U.S. patients. Companies like Eli Lilly and J&J, who have invested in U.S. manufacturing, are concerned about the tariffs’ impact on research and development.



Read more at CNBC: Trump says pharmaceutical tariffs are coming, but stocks rise