Pfizer’s chief executive, Albert Bourla, told investors that the uncertainty surrounding President Donald Trump’s proposed tariffs on imported medicines is keeping the company from investing more in U.S. factories and research labs.

Speaking during Pfizer’s first-quarter earnings call on Tuesday, Bourla was asked what assurances the company would need from trade negotiators to boost domestic investment. CNBC reported, his answer made clear that pending levies on drugs coming into the United States are a major roadblock. 

Trump’s administration has argued that such tariffs would encourage more manufacturing on American soil.

“If I know that there will not be tariffs, then there are tremendous investments that can happen in this country, both in R&D and manufacturing,” Bourla said. He added that Pfizer is looking for “certainty” before committing to new projects.

He went on to explain that in times of doubt, companies tend to watch their spending closely. “In periods of uncertainty, everybody is controlling their cost as we are doing, and then is very frugal with their investment, as we are doing, so that we are prepared for the future. So that’s what I want to see.”

On the tax front, Bourla pointed out that the introduction of an OECD global minimum tax of around 15% last year hasn’t necessarily made the U.S. more attractive for investment. He emphasized that the lack of additional incentives or clear policies around Trump’s tariffs continues to deter further investment in U.S. manufacturing and research.

“Now [Trump] I’m sure — and I know because I talked to him that he would like to see even a reduction in the current tax regime, particularly for locally produced goods,” Bourla said. He suggested that further cuts on domestic production could be a powerful draw for companies to build plants and labs in America.

Pfizer held firm on its full-year financial forecast despite these trade uncertainties.

Unlike many companies facing trade-policy shifts, Pfizer left its full-year forecast intact on Tuesday.

In its earnings release, the company pointed out that its guidance “does not currently include any potential impact related to future tariffs and trade policy changes, which we are unable to predict at this time.”

But on the earnings call, Pfizer’s chief financial officer, Dave Denton:

“Included in our guidance that we didn’t really speak about is there are some tariffs in place today,” he continued. “We are contemplating that within our guidance range and we continue to again trend to the top end of our guidance range even with those costs to be incurred this year. ”

Denton said those existing duties would total about $150 million.

The company reaffirmed its full-year 2025 sales target of $61 billion to $64 billion, forecasting that its Covid-related products will perform at roughly the same level seen in 2024.

Bourla said Pfizer has set up a dedicated team to weigh different tariff scenarios and come up with plans to lessen any fallout, both in the near term and over the longer haul. That group is focused on managing current inventory levels in key regions, leaning on Pfizer’s U.S. factories, and other steps to keep the business running smoothly.

“Should we be impacted by further tariffs in the future, we will assess the impact of the policies enacted and provide information at the appropriate time,” Bourla said, signaling that the company will continue to watch Washington’s trade moves before making any major new commitments.

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