Pharma tariff relief is likely to be short-lived as a sector-specific obligation on the horizon

The pharmaceutical company sighed in relief Wednesday after US President Donald Trump revealed he was not subject to mutual tariffs, but could prove that the reprieve is fleeting as the White House moves forward with sector plans.

The Trump administration is considering launching a so-called 232 investigation into medicines, among other industries, that could lead to import obligations under the Trade Expansion Act.

“The pharmaceutical companies will roa and they will come back, they are all coming back to our country, because they can’t get the big taxes they need to pay, so they will come back to our country. And if they do, I will be very happy.”

In the national emergency declaration following tariff planning, the White House cited the “particularly serious” need to strengthen domestic manufacturing across sectors such as drugs, automobiles and shipbuilding.

Healthcare stocks rose slightly on Thursday, but the Stoxx Healthcare Index fell 0.4% by 11am London time, extending losses as investors sought more uncertainty ahead.

Switzerland Roche LEDs cut by 2.4%, and Wegovy-Maker Novo fell 0.7%. Other regional players including NovartisBavarian Nordic AstraZeneca I checked it a little above.

Pharma industry’s hopes for tariff sculpture across the sector have declined after Trump last week confirmed the announcement would soon be announced, but since then drugmakers have lobbyed the administration for a gradual approach to make sure businesses have time to relocate manufacturing nations.

“The whispering potential of a gradual intrusion approach could undermine the immediate shock across the industry if it were to happen,” City said in a memo Thursday.

Nevertheless, even with a delayed approach, the complex nature of the drug supply chain means “large shifts are on a multi-year timeline” and can potentially save short lives. Furthermore, this sector’s reliance on raw materials may be subject to customs duties on other goods.

“Companies are completely inescapable as they rely on imports of many categories to support the drug development process,” said Sheenabury, a healthcare analyst at Kilter Cheviot. “But these should be easier to manage given the low-cost products in the sector.”

Novo Nordisk Although he declined to comment on the development of tariffs on Thursday, Chairman Helju Rand told CNBC last week that the company had not speculated on tax announcements and instead focused on staying “flexible.”

Novo Nordisk already has a considerable US manufacturing presence, but Lund says it is “expanding”, but will not comment on the share of US sales gained from US plants or the impact of tariffs on Wegovy’s drug prices.

In a statement Thursday, Roche said there is a full pharmaceutical and diagnostic value chain in the United States, which employs 25,000 staff, but added that he is “considering additional US investments to continue to meet patient needs.”

Novartis also cited its “robust global manufacturing supply network,” saying it had committed to “working constructively” on policies that “support next-generation drug development and appropriate patient access.”

British drug maker AstraZeneca declined to comment prior to further sector-specific announcements.

Meanwhile, Danish biotech Novonesis, which has a significant footprint in the US, told CNBC on Tuesday that “uncertainty” over its tariff strategy is likely to curb investment and consumer demand for dentists.

“It promotes uncertainty and when you’re uncertain, you pause. You pause innovation, post launches, pause investments,” she said.