US President Donald Trump speaks the day on April 8, 2025 in the White House in Washington, DC, USA, energy-related executive commands.
Leah Millis | Reuters
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President Donald Trump doubled plans to force “big” tariffs for pharmaceuticals imported in the USA
After drug manufacturers inhaled a temporary sigh of relief last week when Trump freed the sector from his big round of so -called mutual tariffs.
“We will shortly announce a large tariff for pharmaceuticals,” he said on Tuesday at a dinner of the National Republican Congress Committee after several news agencies. “And when you hear that, you will leave China. You will leave other places because you have to sell – most of your product will be sold here and you will open your plants anywhere.”
Drug production in the USA has shrunk considerably in recent decades. The production of most so -called active ingredients in drugs in drugs have been drawn to China and other countries, according to the Food and Drug Administration.
It is unclear what these tariffs will look like. But Trump said on board Air Force One last week that “pharmaceutical” tariffs “would be at a level that they have never really seen before,” said several reports.
The pharmaceutical industry is already driving back a few weeks after the announcement of some companies to create the US manufacturing investments in order to build a good will with Trump.
FileToto: David Ricks, Chairman and Chief Executive Officer by Eli Lilly & Co., arrives on Wednesday, May 10, 2023, for a hearing on health, educational, work and pension committee of the Senate in Washington, DC.
Al Drago | Bloomberg | Getty pictures
David Ricks, CEO of Eli Lilly, warned on Friday that Trump's decision to impose broad tariffs could ultimately harm the research and development of drugs.
“We cannot violate these agreements, so we have to eat the costs for the tariffs and compromise in our own companies,” Ricks told BBC in an interview. “As a rule, this will be in the reduction of employees or research and development, and I assume that F&E will come first. This is a disappointing result.”
Eli Lilly has managed the industry to set up its US production capacities and has earned 50 billion US dollars for construction and upgrading new systems since 2020. These facilities are the key to the production of the blockbuster weight loss and the company's diabetes.
However, Eli Lilly is mainly dependent on foreign production, especially in Ireland, where it employs more than 3,000 people and built a new institution of $ 800 million.
Pharmaceutical-specific tariffs would probably increase the US medicinal products prices for patients, since companies, even if the companies were producing domestically into domestic, would take years and would cost more than medication abroad, said the analyst of empty part, David Risinger, in a note last month.
The potential effects of tariffs on pharmaceutical companies are difficult because in a note in a note in a note in a note in a note in a note in a note in a note in a note in different countries.
But Scala said that Eli Lilly, Bristol Myers Squibb and Abbvie seem better positioned than others for weather tariffs because they have larger production facilities in the United States than international.
Most of their locations that are responsible for the production of the active ingredients in drugs are also in the United States, he added.
In the meantime, Novartis and Roche are “rather at risk” because they only have a few US plants and a higher proportion of international locations, said Scala.
Feel free to send Annikakim.constantino@nbcuni.com tips, suggestions, ideas and data to Annika.
Latest in the healthcare system Tech: Startups in the early stages dominated the financing offers for digital health in the first quarter, the report says that
While January could feel 10 years ago (at least for this tired reporter), we are only a quarter until 2025. According to a new report by Rock Health, what happened with digital health financing.
In the first quarter, 3 billion US dollars were invested in digital health at 122 deals, said Rock Health. The financing rose slightly, but the number of deals decreased, compared to the 2.7 billion US dollars, which were invested in 133 deals in the same period of the previous year.
In the fourth quarter of the last year, the sector achieved 1.8 billion US dollars of $ 1.8 billion.
Small startups in the early stage dominated the room in the first quarter of 2025, since Rock Health Rock Health made 83% of the designated deals.
The company calls rounds without public titles (such as series A) “Unmarked Rounds”. Start -ups often increase unclear rounds to avoid that evaluation haircuts are available and piercing challenging markets, although they often do not turn off these difficult conversations forever.
Only five companies that were labeled with series D or later in the first quarter, and three of these rounds were over 100 million US dollars. The health data company Innovaccer announced an increase of $ 275 million in January, the AI Automation Company Qventus announced a round of $ 105 million in January and AI Scripting Company Abridge announced an increase of $ 250 million in February.
These deals contributed to drawing the average round size of the later level to $ 105 million, almost twice as high as the median round size of $ 55 million for this cohort from 2024.
While the first quarter of the year was free of major disorders of the financing of digital health companies, the second quarter could make further challenges.
The public markets have roamed after President Donald Trump announced an aggressive, far-reaching “mutual” tariff policy last week, which the US and its trading partner in. Last week the Nasdaq Composite recorded its worst week since the beginning of Covid pandemic and entered a bear market.
The tariffs came into force on Wednesday, although investors have no full clarity: Trump has signaled that he could negotiate with trading partners about the potential reduction of their prices. The global trade conflict changes from minute to minute, which causes some venture investors to hesitate to reduce large checks in the near future.
CNBC treats the latest developments and you can follow our live reporting here.
Feel free to send tips, suggestions, story ideas and data to Ashley at Ashley.capoot@nbcuni.com.
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