Shares of Moderna, Inc. (MRNA) tumbled 5.05% in after-hours trading on Wednesday, following U.S. President Donald Trump's announcement of reciprocal tariffs that could significantly impact the pharmaceutical industry. The biotechnology company, known for its mRNA technology and COVID-19 vaccine, saw its stock price decline sharply as investors reacted to the potential implications of the new trade measures.
President Trump unveiled plans for reciprocal tariffs on pharmaceuticals, targeting major drug trading partners. The proposed tariffs include rates of 20% on the European Union, 26% on India, and 34% on China. While the White House clarified that pharmaceuticals were exempt from Wednesday's tariffs, Trump's intention to implement sector-specific tariffs for pharmaceuticals in the future has sparked concern among investors and industry players alike.
The news had a ripple effect across the pharmaceutical and biotech sectors. Other major drugmakers also experienced declines in extended trading, with Johnson & Johnson down 0.6%, Eli Lilly falling 2.4%, Bristol Myers Squibb dropping 0.7%, and Regeneron declining 2%. The broader impact was reflected in the SPDR S&P Biotech ETF, which fell 4%, indicating widespread concern about the potential consequences of these tariffs on the industry's profitability and global competitiveness.
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