Pfizer CEO Albert Bourla expressed concerns on Tuesday over the uncertainty surrounding planned pharmaceutical tariffs, saying it is discouraging the company from increasing investments in U.S. manufacturing and research and development. The comments were made during Pfizer’s first-quarter earnings call and reflect the broader hesitation within the pharmaceutical industry amid proposed trade measures aimed at reshoring production.
Bourla emphasized that without clarity on future tariffs, the company is hesitant to commit to significant domestic investments. He stated that if the administration were to guarantee the absence of tariffs, Pfizer would consider major expansions in both manufacturing and R&D within the United States. He stressed that certainty in policy is essential, as periods of uncertainty lead companies like Pfizer to control costs and adopt a cautious investment strategy.
He also pointed to the international tax landscape, noting the recent implementation of a global minimum tax of around 15%. While this change aimed to standardize tax environments and reduce the incentive to shift operations overseas, Bourla noted that it has not necessarily made the U.S. more appealing as a site for investment. He argued that without additional tax incentives or clearer trade policies, the environment remains challenging for businesses considering domestic expansion.
Bourla mentioned that conversations with the former president revealed interest in reducing the current tax burden, especially for goods produced within the country. Such a reduction, he said, could significantly strengthen the case for building and investing in U.S. operations.
While some companies have revised their forecasts due to trade-related uncertainty, Pfizer maintained its full-year outlook. However, the company clarified in its earnings release that its guidance does not account for any future changes in tariffs or trade policies, as these remain unpredictable at this stage.
During the earnings call, Pfizer’s chief financial officer acknowledged that the current forecast does include approximately $150 million in costs associated with tariffs already in place. He added that the company is still trending toward the upper end of its guidance range, demonstrating resilience despite these additional expenses.
Overall, Pfizer’s leadership conveyed a clear message: stability in policy and tax incentives are key to unlocking further investment in the United States. Without such assurances, companies are likely to remain conservative in their capital allocation strategies.
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