The Trump administration will impose a 100% tariff on branded pharmaceutical imports not tied to US manufacturing to lower drug prices and encourage onshore production. European pharma stocks showed mixed reactions, with Novo Nordisk dropping the most. Most companies already investing in US facilities may be exempt from the tariffs, limiting their impact. European and US biopharma firms have ramped up US investment plans in response to potential tariffs, with major companies committing billions to US manufacturing and research facilities by 2030. Novo Nordisk and Eli Lilly, with existing plans to invest in US capacity, are considered special cases by analysts. European companies rely on below-average imports, while US companies have larger existing US manufacturing footprints.

Read more at Morningstar: European Pharma Stock Investors Hold Their Nerve as Trump Unveils 100% Tariffs