Jamie Spencer
Pfizer CEO Albert Bourla voiced concerns on Tuesday about the uncertainty surrounding President Donald Trump’s planned pharmaceutical tariffs, which are deterring the company from increasing investments in U.S. manufacturing and research and development. His comments came during the company’s first-quarter earnings call in response to a question about tariff negotiations and their impact on Pfizer’s future investment decisions.
Uncertainty and Investment Hesitance
Bourla emphasized that while Pfizer could make substantial investments in both R&D and manufacturing in the U.S., this will only be possible if the company receives more certainty regarding tariff policies. “If I know that there will not be tariffs… then there are tremendous investments that can happen in this country,” Bourla explained, noting that the current period of uncertainty is leading the company to control costs and be more frugal with its investments.
Tax Environment and Global Minimum Tax Impact
Pfizer’s CEO also discussed changes in the tax environment, which had previously driven some manufacturing abroad. With the implementation of a global minimum tax of around 15%, Bourla acknowledged the shift but noted that it has not made the U.S. more attractive for investment without additional incentives or clarity regarding tariff policies. He mentioned that President Trump has indicated a desire to reduce the current tax regime, especially for locally produced goods, and that such a reduction would be a strong incentive for manufacturing in the U.S.
Pfizer’s Full-Year Outlook and Tariff Costs
Despite the uncertainty surrounding trade policies, Pfizer did not revise its full-year outlook. However, the company clarified that the guidance provided does not currently include potential impacts from future tariffs and trade policy changes, which are difficult to predict. Bourla and CFO Dave Denton confirmed that the company has factored in $150 million in costs from Trump’s existing tariffs into their financial guidance.
“We are contemplating that within our guidance range,” Denton stated, adding that Pfizer is still trending toward the top end of its guidance range, despite these tariff-related costs.
