On April 3, 2025, pharmaceutical stocks, including Merck, mostly rose after President Trump's executive order exempted medicines from new tariffs. This decision removed a significant near-term trade risk for the industry.
The exemption means that pharmaceutical products, which have long been spared from trade disputes due to potential harm to patients, will not face additional import duties. This provides relief from potential cost increases and supply chain disruptions.
The pharmaceutical sector also benefited from its status as a defensive play amidst broader market volatility. This development is a positive for Merck, as it alleviates concerns about tariff-related impacts on its cost of sales and product pricing.
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