Pfizer Chief Executive Albert Bourla expressed concerns on Tuesday regarding the uncertainty surrounding former President Donald Trump’s proposed tariffs on pharmaceuticals, stating that it is hindering the company’s willingness to expand its manufacturing and research investments in the United States.
During a question-and-answer session on the company’s first-quarter earnings call, Bourla responded directly to inquiries about the conditions Pfizer would need to see addressed in tariff negotiations to encourage heightened domestic investment. His comments come amid apprehensions within the pharmaceutical sector about upcoming tariffs aimed at increasing American manufacturing capabilities.
“If I know that there will not be tariffs… then there are tremendous investments that can happen in this country, both in R&D and manufacturing,” Bourla explained, emphasizing the need for “certainty” in the regulatory environment.
Addressing the current tax landscape, Bourla noted that the establishment of a global minimum tax of approximately 15% represents a significant change from previous conditions that drove manufacturing operations overseas. However, he expressed that this change does not necessarily make the U.S. a more appealing location for investment, particularly in the absence of further incentives or clarity regarding tariff policies.
“Now [Trump] I’m sure — and I know because I talked to him — that he would like to see even a reduction in the current tax regime particularly for locally produced goods,” Bourla said, emphasizing that such a reduction would serve as a compelling motivation for increasing manufacturing in the U.S.
Despite the shifting trade landscape, Pfizer chose not to alter its full-year forecast during the earnings call. Nevertheless, the company did clarify in its earnings release that the guidance provided “does not currently include any potential impact related to future tariffs and trade policy changes, which we are unable to predict at this time.”
During the call, Pfizer executives acknowledged that the current guidance already factors in $150 million in expenses associated with existing tariffs imposed by the Trump administration.
“Included in our guidance that we didn’t really speak about is there are some tariffs in place today,” Pfizer Chief Financial Officer Dave Denton stated on the call.
“We are contemplating that within our guidance range, and we continue to trend to the top end of our guidance range even with those costs to be incurred this year,” he added.
