Pfizer CEO says tariff uncertainty is deterring further U.S. investment in manufacturing, R&D

Albert Bourla, the CEO and chairman of Pfizer, delivered a speech at The Wall Street Journal’s Future of Everything Festival in New York City, U.S., on May 22, 2024.

During Pfizer’s first-quarter earnings call, CEO Albert Bourla expressed concerns about the uncertainty surrounding President Donald Trump’s proposed pharmaceutical tariffs, indicating that it is hindering the company from expanding its investments in U.S. manufacturing and research and development. Bourla emphasized the need for clarity and the elimination of tariffs to encourage significant investments in the U.S., both in R&D and manufacturing. He also mentioned that the current tax environment, despite recent changes, is not attractive enough for investments without additional incentives or tariff clarity.

Bourla highlighted the importance of reducing the tax regime for locally produced goods to further incentivize manufacturing in the U.S. Despite the challenges posed by evolving trade policies and existing tariffs, Pfizer did not adjust its full-year outlook during the earnings call. However, the company acknowledged potential impacts related to future tariffs and trade policy changes, including $150 million in costs from Trump’s current tariffs.

Pfizer’s CFO, Dave Denton, confirmed that the company factored these costs into their guidance range and remains optimistic about meeting their financial targets despite the challenges posed by tariffs.