CSL Limited (CSL.AU) saw its stock price plummet by 6.58% during intraday trading on Wednesday, following US President Donald Trump's announcement of a potential "major" tariff on pharmaceuticals. The dramatic drop in CSL's stock value reflects immediate investor concerns about the impact of this trade policy on the Australian pharmaceutical giant.
President Trump, in a televised address to the National Republican Congressional Committee, stated his intention to impose tariffs on pharmaceutical imports, claiming, "We are going to tariff our pharmaceuticals and once we do that they're going to come rushing back into our country because we're the big market." This move is seen as an expansion of Trump's ongoing trade war and could significantly affect $1.6 billion in annual Australian pharmaceutical exports.
The announcement has sent shockwaves through the Australian pharmaceutical industry, with CSL being one of the hardest-hit companies. As one of Australia's largest pharmaceutical exporters, CSL faces potential disruption to its US market access and profitability. Investors are likely reacting to the uncertainty surrounding the scale and implementation of these tariffs, as well as concerns about retaliatory measures that could further complicate the global pharmaceutical trade landscape.
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