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Pfizer (PFE-1.31%) CEO Albert Bourla said on Monday that the drugmaker could move some of its overseas manufacturing to its U.S. plants if necessary, as the Trump administration considers imposing tariffs on pharmaceuticals.
Speaking at TD Cowen’s annual healthcare conference, Bourla was quickly asked about his thoughts on the new administration and whether he was surprised by any of its policies.
“I knew that we were going to have radical change,” Bourla said. “And with radical change, the status quo is challenged. So, there will be risks and opportunities.”
He added that the industry’s current strategy is to stay close to the administration and try to “influence the environment.”
When asked if the company was concerned about Trump’s proposed tariffs, Bourla noted that Pfizer likely has the largest manufacturing network in the U.S. within the industry, with 13 manufacturing sites.
“We have the capabilities here and the manufacturing sites are operating in good capacity right now,” Bourla said. “If something happens, we will try to mitigate it by transferring from manufacturing sites outside to the manufacturing sites here.”
President Donald Trump has pushed pharma companies to bring more production to the U.S. as part of his broader effort to boost domestic manufacturing. In February, Trump met with top industry executives, including Eli Lilly (LLY+0.87%) CEO David Ricks. A week later, Eli Lilly announced plans to invest $27 billion in four new U.S. manufacturing facilities.
Since taking office, Trump has proposed several tariffs. He announced last month plans to impose tariffs “in the neighborhood of 25%” on imported vehicles, semiconductors, and pharmaceuticals starting in April.
Meanwhile, 25% tariffs on most imports from Mexico and Canada are set to take effect on Tuesday, and duties on Chinese goods will rise by 10%.
Trump also suggested that tariffs on imported goods from the European Union are “coming very soon.” And he recently signed a memorandum that directs his advisers to draft new “fair and reciprocal” trade tariffs on all major U.S. trading partners.
These new tariffs would factor in not just the tolls other countries impose on U.S. goods, but also foreign subsidies, exchange rates, and taxes on imports — all things Trump argues give other nations an unfair edge.