Pfizer CEO: Tariff Uncertainty Hindering US Investment in Manufacturing and R&D

Pfizer CEO Albert Bourla remarked on Tuesday that uncertainties surrounding President Donald Trump’s Drug Tariff are hindering the company’s ability to pursue further investments in U.S. manufacturing and R&D.

During the company’s Q1 Revenue Call, Bourla responded to inquiries about Pfizer’s expectations regarding tariff negotiations, emphasizing the need for increased investments in the U.S.

“If there’s a guarantee of no tariffs… significant investments could be made in both R&D and manufacturing here,” Bourla stated, emphasizing the company’s desire for “certainty.”

“In times of uncertainty, everyone is focused on minimizing costs, as we are, leading to frugal investment practices. We are poised to allocate funds; that’s what I hope to see,” Bourla commented.

He highlighted that the current tax climate, which previously favored overseas manufacturing, is “undergoing significant changes” with the establishment of a global minimum tax around 15%. Bourla expressed concerns that these changes alone do not necessarily make the U.S. a more appealing investment destination without added tariff incentives or clarity.

“I spoke with [Trump], and I believe he aims to modify the existing tax framework, particularly for domestically produced goods,” Bourla said, indicating that further reductions could incentivize U.S. manufacturing.

In contrast to other companies navigating shifting trade policies, Pfizer did not alter its full-year forecast on Tuesday. Nevertheless, the company noted in a revenue statement that its guidance “currently does not account for any potential impacts related to future tariffs or trade policy changes, which remain unpredictable.”

In the revenue call, Pfizer executives mentioned that the guidance reflects $150 million in expenses attributed to Trump’s existing tariffs.

“The guidance we didn’t address today includes some of the current tariffs,” stated Pfizer CFO Dave Denton over the phone.

“We believe we are still trending towards the upper end of the guidance range, even with these costs this year,” he added.