Trump’s New Tariffs on Pharma Shake Asia, Europe, and the Stock Market

President Donald Trump's aggressive trade policy has sent shockwaves through global markets with a 100% tariff on branded pharmaceuticals effective October 1. The MOVE targets foreign-made drugs, forcing companies to either establish U.S. production or face prohibitive costs. While Eli Lilly and Johnson & Johnson already operate domestic facilities, smaller Asian manufacturers face existential threats.

Asian pharma stocks plunged immediately after the announcement. Japan's Daiichi Sankyo and Chugai Pharmaceutical led a 1.47% drop in the Topix Pharma Index, while South Korea's Samsung Biologics recorded heavy losses. The tariff undermines a decades-old outsourcing model that kept drug prices low—now, analysts warn of shortages and inflationary pressures across healthcare sectors.