Trump's 100% Drug Tariff Will Hit Americans, Economist Says Buyers 'Eat The Cost,' Not Foreign Firms - SPDR Dow Jones Industrial Average ETF (ARCA:DIA), First Trust Nasdaq Pharmaceuticals ETF (NASDAQ:

Core Insights - The proposed 100% tariffs on foreign pharmaceuticals will ultimately increase costs for American patients and insurers rather than reducing prices as intended [1][2][3] - The pharmaceutical industry warns that tariffs will hinder investment in American manufacturing and development of new treatments [5][6] Industry Impact - The tariffs are part of a strategy to protect American manufacturers, leading to a $270 billion investment surge in U.S.-based manufacturing, benefiting companies like Eli Lilly and Pfizer [4] - Despite potential benefits for domestic companies, the tariffs will significantly impact consumers relying on patented drugs, leading to higher prices [5][6] Economic Analysis - Economist Justin Wolfers argues that the lack of competition for patented drugs means manufacturers can pass the full cost of tariffs onto U.S. consumers [2][3] - An Oxford Economics analyst predicts a meaningful commercial hit for U.S. consumers, particularly vulnerable patients needing patented medications [6] Market Performance - Various pharmaceutical-linked exchange-traded funds (ETFs) show mixed performance, with some ETFs like SPDR S&P Pharmaceuticals ETF and Invesco Pharmaceuticals ETF performing relatively well [8][9] - Broader market indices, including the S&P 500 and Dow Jones, experienced gains, indicating a positive market sentiment despite the tariff news [10]