U.S. Pharmaceutical Imports Might Soon Face Tariffs: 3 Stocks That Could Tumble as a Result

Core Viewpoint - The pharmaceutical industry is facing potential cost increases due to the U.S. tariff war, particularly affecting companies reliant on foreign manufacturing [1][2][3] Group 1: Impact of Tariffs on Pharmaceutical Companies - The U.S. has threatened a 25% import tariff on foreign-made drugs, which could push domestic production but also increase costs for companies [2][3] - Companies like Amgen, Pfizer, and AbbVie are particularly vulnerable due to their reliance on overseas manufacturing, especially in countries like Ireland [5][11][16] - The construction of new U.S. manufacturing facilities is costly and time-consuming, leaving companies exposed to rising costs and thin profit margins [3][10] Group 2: Company-Specific Vulnerabilities - Amgen: Heavily reliant on overseas production, particularly in Ireland and Singapore, which could become a liability if tariffs are imposed [7][8][9] - Pfizer: Significant production of top-selling drugs in Ireland and other European countries, with potential tariffs impacting about 10% of its total revenue [11][13][12] - AbbVie: While the company has not included tariff impacts in its guidance, analysts suggest it could face hundreds of millions in costs due to reliance on foreign manufacturing for bestsellers [17][18][19] Group 3: Financial Implications - Rising costs from tariffs could erode already thin profit margins across the pharmaceutical sector [10] - AbbVie is earmarking $10 billion for domestic manufacturing expansion over the next decade, indicating a significant financial commitment amid tariff uncertainties [20] - The company is also facing challenges in maintaining its dividend amidst ongoing patent wars and high advertising costs for its products [22]