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Investing.com - Shares of European drugmakers slipped on Wednesday after U.S. President Donald Trump said that tariffs of up to 200% on pharmaceutical imports could be coming "very soon."
In midmorning dealmaking, Novartis ’ (SIX:NOVN) stock price in Switzerland dropped by 0.5%, Novo Nordisk (CSE:NOVOb) in Copenhagen fell by 1.6%, Roche (SIX:ROG) was lower by 0.2%, and Zealand Pharma (CSE:ZELA) had dipped by 1.5%. On Tuesday, U.S. peers also declined following Trump’s threat.
Speaking at a cabinet meeting, the president suggested that the tariffs on drugs imported into the United States are going to be at a "very high rate, like 200%."
However, he noted that the levies will likely not go into effect immediately. He also seemed to suggest that he could give firms "about a year, year and a half" to prepare for the change and "get their act together."
U.S. Commerce Secretary Howard Lutnick later told CNBC in an interview that more details on the pharmaceutical tariffs would be coming at the end of July, adding that "studies" on these duties will be completed by then. But Lutnick said he would let Trump "wait to decide" how he wants to approach the tariffs.
Trump’s administration previously began a so-called Section 232 investigation into specific levies on drugmakers in April. Should they come into effect, pharma firms have warned of rising costs, supply chain snags and lowered investment in the U.S.
The pharma industry is also at odds with the White House over Trump’s proposal to slash drug prices by linking them to those paid in other developed countries. Drugmakers have said the policy would dent their financial returns and hurt their ability to fund research into new medicines.