The 100% Trump prices on pharmaceutical products will be “a significant commercial success for American consumers”

“From October 1, 2025, we will impose a 100% rate on any brand pharmaceutical or patented product, unless a company builds its pharmaceutical manufacturing plant in America,” said the president on social networks. “” Construction “will be defined as,” noisy “and / or” under construction “. There will therefore be no rate on these pharmaceutical products if the construction has started. »»

The bad news: drug prices will be “a significant commercial success for American consumers”, according to Oxford Economics analyst Louise Loo. Exporters in China, Vietnam and Malaysia will also be affected by a separate survey in article 232 that Trump has ordered if the medical products they provide represent a vulnerability of national security.

The good news: there are several shortcomings in Trump’s proposal which mean that the impact of new taxes can be limited.

This morning, Asian pharmaceutical companies saw their stock market capitalizations carved while merchants are prohibited by foreign drug actions.

“Investors Got A Fresh Reminder About the Trade War, and the Impact has Already Been Evident in Asian Markets. For Instance, Pharmaceutical Companies Have Been Among the Worst Performers This Morning in Japan’s Nikkei (-0.46%), with losses for chugai pharmaceutical (-5.12%) and Sumitomo Pharma (-5.21%), ”Jim Reid and the Team at Deutsche Bank Told Told Customers.

In Europe, the Novo Nordisk in Denmark dropped by 0.43%. Switzerland Roche was slightly down. The France’s Sanofi, counter-testine, increased by 0.33% preheating (but it is probably a dead cat rebound because it lost almost 3% the day before).

In the United States, on the other hand, Pfizer increased by 0.64% preheating. Eli Lilly increased by 1.13%. Bristol-Myers Squibb increased by 0.65%.

On the face, 100% prices seem hard. “Asia provides just over 20% of American pharmaceutical imports per value, a significant commercial success for American consumers with nominal value,” wrote Oxford Loo. But that implies that the White House will be forced to relax certain standards, she said. “We are therefore expecting the United States to follow announcements detailing the protections of certain product categories, flourishing the effective price burden.”

The gaps that will delve the impact of new prices are:

• Generic drugs are not included.
• Companies that can show a program for building on a program can be excluded.
• The companies in Japan and Korea “are actually protected by guarantees of commercial panel,” added Loo.

Paul Donovan D’UBS said the same thing: “The 100% pharmaceutical rate only applies to brand medicines, and the construction of a factory can cause an exemption. Many pharmaceutical companies have installations in the United States, so it can be relatively easy to extend these installations superficially to prevent prices to be applied. ”

In fact, many American companies can also be protected. According to the Wall Street Journal, a dozen or more pharmaceutical companies have promised to spend $ 350 billion this year in manufacturing and R&D in the United States.

However, Big Pharma is officially unhappy. “Companies (drugs) continue to announce hundreds of billions of new American investments,” a spokesman for pharmaceutical research and American manufacturers said in WSJ. “The prices risk these plans because each dollar spent in prices is a dollar that cannot be invested in American manufacturing or the development of future treatments and remedies.”

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