Finance
US tariffs, pricing risks to be manageable for Big Pharma, Morningstar says
Published by Global Banking and Finance Review
Posted on September 10, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 10, 2025
2 min readLast updated: January 22, 2026
Morningstar reports that US tariffs and pricing risks are manageable for Big Pharma, with minimal impact on profits.
(Reuters) -The impact of U.S. President Donald Trump's plan to levy import duties on pharmaceutical products and his push to lower drug prices are likely to be manageable for big U.S. and European drugmakers, according to an analysis by brokerage Morningstar.
The report said the near term risk from the push to slash prescription drug prices to match those paid overseas would be "exceedingly low" as it could harm patient access to drugs.
In July, Trump had called on drugmakers to provide so-called most-favored-nation prices to every patient enrolled in the government Medicaid health program for low-income people, and to guarantee such pricing for new drugs.
The report looked at ten major pharmaceutical firms in the U.S. and Europe - AstraZeneca , Novartis, Sanofi, GSK, Novo Nordisk, AbbVie, Amgen, Eli Lilly, Merck, and Pfizer.
While all companies will likely need to pay higher taxes in the long-term after relocating manufacturing to the U.S., European firms will also face elevated costs associated with new facilities, the report said.
Several global drugmakers have pledged billions of dollars to scale up their U.S. manufacturing capacity as the industry braces for sector-specific tariffs.
Trump has said he would initially start small with pharma tariffs and eventually hike it up to 250% in an effort to boost domestic production.
The U.S. had also reached a bilateral trade deal with the European Union in July, which includes a 15% tariff on pharmaceuticals, except for some generic drugs.
Assuming an initial 15% U.S. tariff on pharmaceuticals, the brokerage estimates the impact to peak at about 4% of core profit on average, after mitigation efforts, for the companies analyzed.
(Reporting by Mariam Sunny in Bengaluru; Editing by Maju Samuel)
Trump has indicated an initial 15% tariff on pharmaceuticals, which could increase significantly over time.
The report suggests that the push to lower drug prices could harm patient access to medications, though the near-term risk is deemed low.
The report examines ten major pharmaceutical firms, including AstraZeneca, Novartis, Sanofi, GSK, Novo Nordisk, AbbVie, Amgen, Eli Lilly, Merck, and Pfizer.
While companies may face higher taxes due to relocating manufacturing to the U.S., the impact on core profits is estimated to peak at about 4% after mitigation efforts.
Several global drugmakers have committed billions to enhance their U.S. manufacturing capacity in anticipation of sector-specific tariffs.
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