Big pharma, big troubles ahead, by Bogdan Maioreanu

Donald Trump’s tariffs are posing a threat to the global pharma industry. The US market represents almost half of the global pharma sales. The Trump administration’s current pharmaceutical policy centers on two main points: lowering prescription drug prices for Americans by pressuring pharmaceutical companies to match or undercut prices paid abroad, and imposing steep tariffs on pharmaceutical imports to encourage domestic drug production.

In an interview with CNBC, Trump said that US tariffs on pharmaceuticals would initially be small, but would increase to 150% and then 250% because the American president wants pharmaceuticals to be made in the USA. If enforced, U.S. pharmaceutical tariffs of this size will be unprecedented and are expected to disrupt global supply chains, potentially leading to higher prices if companies pass on costs to consumers.

European pharmaceutical giants like Novartis, Roche, and Sanofi are considered more vulnerable, as they have substantia...