Trump is 200% pharmaceutical

The pharmaceutical industry fights planning scenarios as 200% of President Donald Trump’s tariff proposal threatens to increase drug prices and disrupt corporate income.

President Once again warned The long -awaited nationwide tariffs will be announced on Tuesday “Very soon” Once the administration has launched the so -called 232 Investigation to the sector in April.

Trump suggested that these levies would not take effect at once, but will receive a grand period of “about a year and a half”.

Analysts, however, warn that such speed – even with delay – will adversely affect drug prices and profits.

“The 200% tariff inflates for production costs, squeeze profits and interruptions in the supply chain, which will lead to drug lack and higher prices for US consumers,” Barclays writes on Wednesday.

UBS analysts referred to a “significant negative impact” on the margins where the goods are produced on the US borders, meanwhile, the hit for patients may be “catastrophic”, Afsaneh Beschloss, founder and CEO of the RockCreek Group said on Tuesday, referred to 100% Lev.

“It can be potentially catastrophically for each person because we need these pharmaceuticals, and it takes a lot of time to produce them here in the US,” CNBC’s final bell said.

It is estimated that the tariff of only 25% on pharmaceutical imports will increase the US drug prices by almost $ 51 billion annually, increasing the domestic prices according to Research of the industry trading group of pharmaceutical research and manufacturers of America (PhRMA), which on Wednesday weakened the President’s proposals as “counterproductive” for health results.

In response to global pharmaceutical firms – including Novartis. Sanfi and Rosh and outdated in the US Eli Lily and Johnson and Johnson – took on the attachment of large sums in the US

UBS called the administration tariff term from 12 to 18 months as “insufficient time” to move their production states.

“We usually think about 4 – 5 years as a temporary scale to move commercial scales to a new site,” analysts write.

The industry is currently waiting for additional details at the end of this month, when the final report on the investigation section 232. And while the firm has little choice, except for planning various potential results.

The Roche press -secretary said the company “closely monitors the situation” and interacted with the stakeholders to “advocate the policies who seek barriers to access patients” and create “a more just and affordable healthcare ecosystem.”

Earlier, the Swiss pharmaceutical giant said the Trump pricing order could endanger its investment in the US. However, on Wednesday it was noted that the proposed funding would allow it to continue building its production mark in the US

Bayer similarly said he controlled “different tariff ads” and that he was focused on providing her supply chains and “minimizing any potential impact”.

Meanwhile, Novartis said he continues to work with the US Administration and Trading Association partners and that he has no change in planned investments in the US.

Astrazeneca and Sanofi did not immediately respond to CNBC’s request for comment, while Novo Nordisk declined to comment during the binding period.

The pharmaceutical industry previously sought Measuring the whole sector from tariffs. But since these hopes have faded, the attention is now drawn to future trading deals as a potential buffer.

The US-UK trading transaction announced last month, though rare, state The fact that both sides will negotiate “favorable treatment results for pharmaceuticals in the UK and pharmaceutical ingredients that depend on the results of the investigation of Section 232”.

Formal firms in Switzerland and the European Union may strive for such cuts in their future transactions. However, without clarity soon, questions for companies and consumers remain.

“The longer this uncertainty prevails on what the sectors will be affected, and which is not, it will have a constant negative impact,” Bert Colijn said on Wednesday.