Pfizer (PFE) Seeks Clarity on Tariff Policies to Boost U.S. Investments

Despite former President Trump’s claims that high tariffs would encourage companies to move manufacturing back to the U.S., the reality for American firms like Pfizer (PFE, Financial) has been different. During a recent earnings call, Pfizer CEO Albert Bourla highlighted that uncertainties surrounding Trump’s proposed drug tariffs have hindered the company’s ability to further invest in U.S. manufacturing and research and development.

Bourla emphasized the need for “certainty” in trade policies. He noted that if there were assurances against tariffs, substantial investments in both R&D and manufacturing could occur within the U.S. However, the current climate of unpredictability has led companies, including Pfizer, to be cautious with cost management and investment strategies to prepare for the future.

While the U.S. tax environment has improved, with a global minimum tax rate of around 15%, Bourla pointed out that without additional incentives or clear tariff guidelines, the U.S. may not become a more attractive investment destination. He expressed confidence that reducing taxes further, especially for domestically produced goods, would significantly motivate U.S. manufacturing.

Pfizer has maintained its full-year guidance despite the unpredictable trade policies, but noted that its projections do not account for potential impacts from future tariff and trade policy changes.