Wall Street Reacts to Trump's Pharmaceutical Tariff Move
In response to President Trump's announcement of imposing 100% import taxes on pharmaceuticals, shares of major drugmakers, such as Merck, Eli Lilly, and Johnson & Johnson, experienced a rise. These tariffs, effective October 1, exclude companies constructing U.S. plants. Analysts discuss potential impacts on the pharmaceutical industry.
Shares of major drug companies saw an uptick on Friday as Wall Street processed President Donald Trump's recent announcement regarding pharmaceutical tariffs.
Late Thursday, Trump revealed plans to impose a 100% import tax on pharmaceutical products starting October 1. These tariffs will not affect companies establishing manufacturing facilities in the U.S., defined as 'breaking ground' or 'under construction.' Major players like Merck, Eli Lilly, and Johnson & Johnson, who have announced U.S. expansion efforts, seem less impacted.
While Jefferies analyst Akash Tewari suggests the announcement may not materially affect large manufacturers, analysts are wary of its implications for smaller firms. Questions remain regarding the legality of the tariffs and their ties to a national security probe into drug imports. Merck and Lilly shares rose over 1%, with J&J also experiencing a slight climb.
(With inputs from agencies.)
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