Trump Tariff Talk Puts Overseas Pharma Profits in Crosshairs (1)

Tariffs or other measures Washington might take against pharmaceutical giants shifting profits offshore would come with a hefty price tag for an industry whose tax planning has been scrutinized for years.

President Donald Trump’s challenge to Irish Prime Minister Micheál Martin last week over Ireland’s tax code leveraging to draw US pharma companies was only the latest salvo against the longtime practice.

Restricting companies’ ability to tap into the lower Irish tax rate could add 3% to 5% to a business’s tax rate and lead to a 5% drop in valuation, said UBS analyst Trung Huynh.

“If Trump comes ...