Wall Street Breakfast Tariffs hit pharma
Sep 26, 2025
Trump has introduced hefty tariffs affecting pharmaceuticals and heavy trucks, creating a ripple in the market. There’s a looming government shutdown that could lead to mass firings in federal agencies. Inflation concerns persist as the PCE price index is expected to rise. Additionally, tensions are brewing as the U.S. pressures Japan and South Korea for increased financial commitments. The podcast touches on Costco's expansion and major stock movers, painting a comprehensive picture of current economic dynamics.
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Start Construction To Avoid Tariffs
- Companies actively building new U.S. manufacturing facilities can avoid the pharma tariffs if construction has started.
- Firms should accelerate ground-breaking or document construction status to qualify for the exemption.
Tariff Shock To Pharma And Trucks
- President Trump announced steep tariffs including 100% on branded patented drugs and 25% on heavy trucks, effective Oct. 1 unless U.S. construction is underway.
- The move targets onshoring production and could reshape pharma and heavy-equipment import economics.
Agencies Told To Prep For Mass Firings
- The OMB instructed agencies to prepare reduction-in-force notices in addition to furloughs if funding lapses on Oct. 1.
- This signals a harder line than past shutdowns and raises political and operational risk for federal staffing.