The CSL Ltd (ASX: CSL) share price dropped around 3% in early trading as investors reacted to the news of large US tariffs on pharmaceuticals.
CSL is the largest biotech business in Australia and it’s one of the biggest in the world. Its operations are spread across a number of areas including vaccines and blood plasma.
US tariffs on imported pharmaceuticals
According to reports by various media, including CNBC, US President Trump announced that the US will implement a 100% tariff on any branded or patented pharmaceutical product entering the country from 1 October 2025.
However, the measure will reportedly not apply to companies building drug manufacturing plants in the US.
CNBC reported that Trump said the exemption covers projects where construction has started, including sites that have broken ground.
Last month, Trump told CNBC that tariffs on pharmaceutical imports into the US could eventually reach 250%. At the time, Trump said that he’d impose a “small” tariff on pharmaceuticals and then climb to 150% and finally 250%. That timeline may be between a year and a year and a half.
Other tariffs
President Trump also announced a 25% tariff on heavy trucks and a 50% tariff on all kitchen cabinets, bathroom vanities and associated products.
These tariffs come after national security investigations announced earlier this week about the import of robotics, industrial machinery and medical devices.
CNBC reported that the latest probes by the Department of Commerce expand the list of goods that could face higher tariffs, including personal protective equipment such as surgical masks, N95 respirators, gloves and other medical consumables like syringes and needles.
Final thoughts on the CSL share price
The CSL share price has fallen more than 30% since the start of the year – it has been a rough period shareholders.
Ultimately, with a share price, the market is expecting a certain level of profit making by the business and these US tariffs are likely to hurt CSL’s profit, whether that’s because of tariffs or deciding to build facilities in the US.
The valuation is lot cheaper than it was, but I’m not sure what will turn around the trajectory of negative news for the company in the coming months, or even during the rest of Trump’s term. It could be wiser to focus on other ASX shares with an easier path to growth.
