Pfizer may shift production back to US under Trump pharma tariffs

At the 45^th TD Cowen annual healthcare conference in Boston, USA, Pfizer CEO Albert Bourla outlined the potential for Pfizer to shift its overseas drug manufacturing back to the US as pharmaceutical industry players weigh their options against President Donald Trump’s proposed tariffs.

In his first few months in office, Trump has continued his promise on raising tariffs on various nations, including Canada, Mexico, China, and a proposed 25% tariff on Europe. Industries are not excluded – at a press conference held on February 18, Trump commented on a 25%+ tariff hike on the semiconductor and pharmaceutical industries. Though Trump did not provide a timeline for the implementation of tariffs for pharma, the industry is already on edge over what this may mean for manufacturing.

Bourla commented that the situation would be complex given the volume of both generic and innovative drugs produced outside of the US. However, Pfizer’s CEO also commented that Pfizer would likely remain set up for success. Bourla boasts a long-standing working relationship with Trump given Pfizer’s involvement in Operation Warp Speed in 2020 at the onset of the COVID-19 pandemic. “We have all the capabilities [in the USA], and the manufacturing sites are operating at good capacity right now,” mentioned Bourla. “But if something happens, we will try to  mitigate by transferring from manufacturing sites outside to manufacturing sites here.”

Other pharmaceutical companies like Eli Lilly are also scrambling to embrace domestic drug production. Just last week, the company announced plans to begin construction on four new manufacturing plants in the US for this year, a total investment equalling USD$27 billion. The project and eventual facilities is expected to create over 3000 jobs and introduce new drug ingredient plants in the US.

Sources:

1. Pfizer could shift overseas production to US if Trump’s pharma tariffs take hold, CEO says [Accessed February 5, 2025] https://www.fiercepharma.com/manufacturing/pfizer-could-shift-overseas-production-us-if-trumps-pharma-tariffs-take-hold-ceo-says
2. Pharma braces for tariffs as Trump threatens to buck trade convention [Accessed February 6, 2025] https://www.politico.eu/article/pharmaceutical-industry-tariffs-donald-trump-trade-medicines-drugs-supply-chains/