BREAKING: Inflation Data Cements Rate Cut Expectations President Donald Trump delivered the pharmaceutical industry another blow this week, threatening 100% tariffs on companies who don't have a manufacturing presence in the U.S. In a post on social media platform Truth Social, Trump said the administration will impose a 100% tariff starting Oct. 1 "on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America." The post adds to the fast- ...

Core Viewpoint - The Trump administration's announcement of a potential 100% tariff on pharmaceutical products not manufactured in the U.S. has significant implications for the pharmaceutical industry, creating uncertainty and prompting companies to increase domestic manufacturing investments [1][2]. Group 1: Tariff Announcement and Market Reaction - President Trump threatened a 100% tariff on branded or patented pharmaceutical products starting October 1 unless companies establish manufacturing plants in the U.S. [1] - Following the announcement, pharmaceutical stocks remained stable, with the SPDR S&P Pharmaceutical ETF (XPH) rising by 1.6% and the VanEck Pharmaceutical ETF (PPH) increasing by 0.6% [3]. - Analysts suggest that larger biopharmaceutical companies may not be significantly affected due to ongoing U.S. facility construction, but smaller companies could face exposure [2]. Group 2: Company Responses and Investments - Pharmaceutical companies have announced over $350 million in U.S. manufacturing investments, with Amgen committing to expand its U.S. manufacturing by $650 million following the tariff threat [4]. - Amgen's CEO emphasized the importance of increasing capacity to deliver innovative medicines and creating high-quality jobs in biotechnology [5]. - Companies like Argenx, AbbVie, and Novartis highlighted their U.S. manufacturing capabilities during recent earnings calls, indicating a strong domestic presence [6]. Group 3: Broader Implications and Investigations - The tariff threat may serve as a negotiating tactic related to the ongoing Section 232 investigation into the impact of imports on national security [7]. - A separate Section 232 investigation into medical devices was announced, causing a nearly 2% decline in the medical-products industry group [8]. - Analysts predict that the medical device investigation may lead to additional tariffs, similar to the pharmaceutical tariffs, but the timing remains uncertain [9][10].