If you thought a 104% tariff on China was bad enough, Trump’s found another way to make the markets about himself – now confirming major tariffs on pharmaceuticals.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
Pharmaceutical products were widely left out of Liberation Day tariff schedules – only a week ago – and perhaps that’s because the U.S. gets most of its antibiotics from China.
Or perhaps it was just a reprieve to make sure there were more tariffs left to wave around like a stick.
At any rate, Donnie says the U.S. will soon introduce a “major tariff,” which could be anywhere from something like 15% to ridiculous numbers above 50%.
It’s sure to be a sore point for Aussie investors exposed to biotech.
Just last week, Aussies biggest healthcare stock, blood plasma player CSL Ltd (ASX:CSL) was able to mostly survive a brutal sell-off when Liberation Day tariffs came into effect, given that pharma products weren’t included.
So too did HotCopper forum favourite Mesoblast (ASX:MSB), which declared it was ineligible for tariffs given that its stem cell donors are based in the U.S., making its products of U.S. origin (despite going via a lab in Singapore for processing.)
Well, now, investors aren’t so sure.
The Health Care sector was the worst-performing sector on the ASX at 1pm today.
Trump’s threat of pharmaceutical tariffs, communicated to the ASX by a bunch of headlines from leading news organisations, has quickly settled into Australian investors’ calculus.
A fear that pharmaceutical tariffs may or may not ensnare medical devices is likely also why hearing implant giant Cochlear Ltd (ASX:COH) has seen shares fall nearly -1.5% on Wednesday. Only yesterday, the company told investors it expected to dodge and weave around tariffs.
But that was then, and this is now.
As at 1pm AEST:
- CSL shares are down -5% to $233.81/sh
- MSB shares are down -7% to $1.63/sh
- COH shares are down -1.4% to $252.83/sh.
It’s looking like more pain ahead.
Join the discussion: See what’s trending right now on HotCopper, Australia’s largest stock forum, and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.