How Tariffs will Impact Localized Production

Pharmaceutical Executive: Will tariffs cause a shift towards more localized production?
Arda Ural: These days, predicitons don’t age well. Whatever I speculate may or may not still be relevant in a few months. However, assuming this global decoupling in the pharmaceutical industry continues, every company needs to look at how they are going to manufacture a product and bring it to market.

If there is a supposed trade war with China, that country was a big market for multinational companies over the last 20 years. Since 2002, when China entered the World Trade Organization, China’s emerging middle class became potential customers, not just for pharma, but for medical technology in general. This is assuming that this trend persists, and this new, decoupled world model happens, every company needs to look at what their growth ambitions are. Where they manufacture their products will be important, but where they want to grow will be more important in the long term.