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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America. “IS BUILDING” will be defined as, “breaking ground” and/or “under construction.” There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started. Thank you for your attention to this matter!”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because Donald Trump’s announcement of a 100% tariff on pharmaceutical products not manufactured in the U.S. could lead to volatility in the stock prices of major pharmaceutical companies like Johnson & Johnson, Merck & Company, and Pfizer Inc., as they may face increased costs or pressure to relocate manufacturing. This policy could also impact healthcare-focused ETFs such as the Health Care Select Sector SPDR Fund, Vanguard Health Care ETF, and iShares Biotechnology ETF, as these funds hold significant positions in affected companies. Investors might anticipate shifts in these stocks and ETFs, potentially leading to market fluctuations as companies respond to the new tariff policy.
Here are some of the stocks that might be affected:
Johnson & Johnson ((JNJ)),
Merck & Company ((MRK)),
Pfizer Inc ((PFE)),
Health Care Select Sector SPDR Fund ((XLV)),
Vanguard Health Care ETF ((VHT)),
iShares Biotechnology ETF ((IBB)).