European pharma stocks drop as Trump threatens tariffs
European pharma stocks took a hit after Donald Trump threatened big tariffs on medicines, hoping to push more drug production into the US.
The STOXX Healthcare index dropped 1.6%, hitting its lowest point since mid-April.
Trump's plan could see tariffs jump from a small percentage up to 250% within 18 months—definitely putting pressure on the industry.
Pharma leaders warn proposed tariffs could drive up prices
European pharma leaders called the proposed 15% levy "bad for patients," worried it'll drive up prices and limit access to medicines in Europe.
Companies are already feeling the heat—Bayer's shares slid nearly 5% as profits dipped, and AstraZeneca just announced a massive $50 billion investment in US drug manufacturing to get ahead of any changes.
The whole sector is bracing for some major shifts.