The US may expand its tariff measures under President Donald Trump's administration, with plans to impose tariffs on imported pharmaceutical products.
While last week's announced tariffs excluded medications, Trump indicated that tariffs on pharmaceuticals could be introduced separately. The announcement triggered a sharp sell-off in Asian pharmaceutical stocks, with the MSCI AC Asia Health Care Index dropping by 2.6% to its lowest level since October 2023. Notable declines included Japan's Sumitomo Pharma, which plummeted 9.2%, and Astellas Pharma, which fell 5.4%.
Speaking on Tuesday evening (April 8), local time, Trump stated that the US does not produce its own pharmaceuticals or other health-improving products and often pays significantly higher prices for these products compared to countries with domestic pharmaceutical production. He argued that imposing tariffs on pharmaceuticals would incentivize pharmaceutical companies to establish manufacturing plants in the US, given that it is the largest global market.
The European Federation of Pharmaceutical Industries and Associations (EFPIA), a lobbying group representing multiple major European drugmakers, has urged EU leadership to take swift and decisive action to mitigate the risk of pharmaceutical companies relocating to the US.
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