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Pfizer CEO Albert Bourla voiced concerns on Tuesday regarding the uncertainty surrounding former President Donald Trump’s proposed pharmaceutical tariffs, saying this ambiguity is hindering the company’s willingness to increase its investments in U.S. manufacturing and research. His comments were made during Pfizer’s first-quarter earnings call in response to inquiries about what policy changes would encourage the company to commit more resources domestically.
Bourla emphasized that having clarity on tariff policy would be a critical factor in Pfizer’s investment decisions. He noted that, if there were assurances that tariffs would not be implemented, the company would be open to making significant investments in both research and development as well as manufacturing within the United States. For now, however, Pfizer remains cautious, opting to limit spending due to the lack of policy certainty.
He explained that uncertainty naturally leads to cost control and conservative financial planning. Like many companies, Pfizer is currently operating in a fiscally cautious manner, holding back on major investments until the trade and tariff landscape becomes more predictable. Bourla underscored that the company is ready to act when conditions stabilize but, for now, must act prudently.
Bourla also referenced changes in the global tax environment, pointing out that the recently introduced global minimum tax of 15% has altered the landscape. While these changes have reduced the tax advantages of manufacturing overseas, he argued that they have not yet made the U.S. a clearly better option for investment. Without further incentives or clear tariff policies, the U.S. remains only marginally more attractive for expansion.
According to Bourla, Trump is interested in further reducing taxes, especially for goods manufactured domestically — a move that could significantly boost U.S. manufacturing incentives. Bourla, who claimed to have spoken directly with Trump, believes such tax reductions would send a strong signal and create a more appealing investment climate for pharmaceutical companies.
Despite these concerns, Pfizer has not altered its overall financial outlook for the year. However, the company acknowledged that its current guidance does not account for any possible future tariffs or trade policy shifts. Pfizer CFO Dave Denton clarified during the earnings call that existing tariffs are already costing the company $150 million this year, but even with these added expenses, the company still expects to meet the higher end of its projected financial guidance.