Citi: Hikma and Fresenius Best Positioned for Trump’s Proposed Drug Tariffs

Key Facts

In a move reflecting the US administration's push to bolster domestic production and reduce reliance on critical imports, President Trump has announced plans to impose a 100% tariff on imported generic medicines starting August 2028, rising to 200% the following year. According to reports from Citi analysts, this policy aims to reshape healthcare supply chains, placing companies with established domestic manufacturing footprints in a strategic vantage point.

Citi analysts believe that Hikma Pharmaceuticals and Fresenius Medical Care are well-positioned to navigate these regulatory shifts due to their extensive US-based manufacturing operations. This assessment hinges on the fact that manufacturers producing the majority of their US-bound medicines domestically will be shielded from the heavy costs of the proposed levies compared to peers relying on overseas production. This dynamic provides a relative advantage for HKMPF and FMS within the generic drug sector per market data and analyst insights.

Looking ahead, investors are closely monitoring US trade policy developments and their long-term impact on the healthcare sector, particularly as current price levels for these instruments remain unavailable at this time. On the economic calendar, markets are awaiting the Eurozone Consumer Price Index (CPI) and US Housing Starts data on July 17, 2026, which may influence broader market sentiment before these trade policies take effect.