President Trump’s decision overnight Imposing a 100 % tariff On imported pharmaceutical preparations starting from October 1, the prices of foreign pharmaceutical companies are already hit by analysts to digest the extent of damage to the drug.
The president said on social media: “starting from October 1, 2025, we will impose a 100 % tariff on any patented patented product, unless the company is building a pharmaceutical manufacturing factory in America,” the president said on social media. The construction will be defined as “breaking the ground” and/or “under construction.” Thus, there will be no tariff for these pharmaceutical products if construction begins. ”
Bad news: The drug tariff will be a “beneficial commercial success for consumers”, according to Oxford Economic Luise Lu Lu. Sources in China, Vietnam and Malaysia will also be affected by a separate investigation in section 232, which Trump ordered whether the medical products they provide are weak national security.
Good news: There are many gaps in Trump’s suggestion and this means that the impact of new taxes may be limited.
This morning, Asian pharmaceutical companies have seen their market hats when traders saved foreign drug shares.
Investors got a new reminder on the trade war, and the impact was already clear on the Asian markets. Sumitomo Pharma (-5.21 %), “Jim Reed and the team in German bank Tell customers today.
In Europe, Denmark Novo Nordsk 0.43 % decreased. Roche Switzerland was marginal. France SanoviCountering, 0.33 % increased before the market (but this may be a The dead cat is bounced Because it has lost approximately 3 % the day before).
In the United States, in contrast, Vizar 0.64 % rose before the market. Eli Lily It was 1.13 %. Bristol Mairescape Nam 0.65 %.
On his face, the tariffs look 100 % harsh. “Asia provides slightly more than 20 % of American pharmaceutical imports, which is a meaningful commercial success for consumers in the United States with the nominal value,” Loo’s Oxford. This means that the White House will have to relax some criteria. “Therefore, we expect the United States to follow ads that separate protection for some categories of products, which leads to the burden of effective tariff.”
Gaps that will make the effect of the new definitions are:
- Public medicines are not included.
- Companies that can show the construction site can be excluded within the factors.
- Luo added that companies in Japan and Korea are “actually protected through commercial trade guarantees.”
Paul Donovan of UBS said: “The 100 % pharmaceutical tariffs apply to brand medications, and building a factory may lead to exemption. Many pharmaceutical companies have facilities in the United States, so it may be relatively easy to expand these facilities superficially to avoid the definitions that are applied,” said Paul Donovan of UBS.
In fact, many American companies may also be protected. Dozens of pharmaceutical companies promised to spend $ 350 billion this year in manufacturing, research and development in the United States, According to the Wall Street Journal.
However, Big Pharma is officially uncomfortable. “(Drugs) Companies still announce hundreds of billions in new American investments,” a spokesman for pharmaceutical research and manufacturers in America I told WSJ. “The definitions are of risk to these plans because every dollar spent on the tariffs is a dollar that cannot be invested in American manufacturing or developing future treatments and treatments.”
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