President Donald Trump‘s proposed 100% tariffs on pharmaceuticals could have a smaller impact than initially expected, thanks to certain loopholes. However, the pharmaceutical industry, particularly Big Pharma, remains displeased.
Trump’s Drug Tariff Probe Rattles Asian Markets
The proposed tariff is part of a Section 232 probe initiated by Trump to investigate whether medical products from China, Vietnam, and Malaysia pose a national security risk, reported Fortune. This move is expected to affect U.S. consumers and exporters in these countries.
Oxford Economics’ analyst Louise Loo says, “The drug tariffs will be a meaningful commercial hit for US consumers.”
Investors have already felt the impact of this news, with Asian markets experiencing a downturn. However, some American pharmaceutical companies, such as Pfizer (NYSE: PFE), Eli Lilly (NYSE: LLY), and Bristol-Myers Squibb (NYSE: BMY), have seen a rise in their premarket shares.