Bayer Faces Crosswinds: Trump's Generika Threat Overshadows a Quiet Victory on Glyphosate
Published on 07/23/2026 at 10:01 | Redaktion boerse-global.de
The German pharmaceutical and agricultural giant Bayer found itself navigating conflicting trade currents this week. While the company scored a tactical win by withdrawing a controversial tariff petition that had angered its core US farming customers, a fresh protectionist salvo from former President Donald Trump sent the stock sliding.
Bayer shares closed Wednesday at €46.71, down 1.87% on the day, making it one of the worst performers in the DAX 40. The decline came as Trump took to his Truth Social platform to threaten a two-stage tariff on generic pharmaceuticals — a category where Bayer has significant exposure through its generics business. The proposed timeline is notable: no duties would apply until summer 2028, when a 100% levy would kick in for one year, before ratcheting up to 200%. Trump framed the delay as a grace period, giving drugmakers time to shift production to the US. Roughly 90% of the world's generic drugs are manufactured in China and India.
This marks the second tariff salvo aimed at the pharma sector this year. Earlier, Trump had floated a 100% duty on patented brand-name drugs, structured to begin phasing in from late July. Exemptions were promised for companies already manufacturing stateside or benefiting from special trade agreements. The overarching goal remains the same: to force down US drug prices by penalizing offshore production.
The generika threat rippled beyond Bayer. In Copenhagen, Novo Nordisk shed 1.4% in local trading. For Bayer specifically, the stock now sits 13.28% below its 52-week high of €53.86, reached on July 3. Yet the longer-term picture remains robust: the shares are up 24.24% year-to-date and have surged 60% over the past twelve months.
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A Retreat on Glyphosate
The tariff news overshadowed a significant development on the agricultural side of Bayer's business. Its subsidiary Ruveon — the former Monsanto entity — formally withdrew a petition before the US International Trade Commission that had sought anti-dumping duties of up to 446% on Chinese glyphosate imports.
The about-face came after fierce pushback from two powerful farm lobbies: the National Corn Growers Association and the American Soybean Association. Both warned that such punitive tariffs would hammer US farmers already grappling with tight margins in a soft agricultural market. Bayer cited its commitment to prioritizing the interests of American growers in explaining the withdrawal, which was finalized Tuesday and Wednesday.
The episode underscores the delicate balancing act Bayer must perform. The company relies heavily on US farmers for its crop science revenue, yet its relationship with that constituency has been strained by years of litigation over glyphosate-based herbicides. Escalating a trade war over the very chemical at the center of those legal battles would have risked further alienating its customer base.
Quiet Progress on Other Fronts
Away from the trade headlines, Bayer continued to advance its pipeline. The company announced a clinical collaboration with US biotech Kairos Pharma, which will test its antibody ENV-105 in combination with Bayer's established oncology drug Xofigo (radium-223). The study targets patients with metastatic castration-resistant prostate cancer, aiming to improve outcomes in treatment-resistant cases.
On the balance sheet front, Bayer confirmed a previously announced deal with Apollo Global Management. The financial investor is injecting €3 billion into a new entity that will house Bayer's long-acting contraceptive business. Bayer retains majority control and full operational oversight, while the fresh capital is earmarked for debt reduction and managing upcoming bond maturities.
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The company also showcased progress on its newgold Camelina oilseed platform at the Ag in Motion trade show in Canada. A partnership with BP, sealed in May, is driving North American cultivation of the crop for use in sustainable aviation fuel and biodiesel. The initiative offers farmers a new revenue stream outside traditional crop rotations, leveraging expertise gained through Bayer's acquisition of Smart Earth Camelina.
What's Next
All eyes now turn to August 4, when Bayer reports second-quarter results. Analysts will be parsing the numbers for any operational impact from the shifting trade environment, as well as updates on the company's adjusted profit guidance for the full year. The US legal landscape — particularly the ongoing glyphosate litigation — remains a key overhang, and investors will be watching for any new developments on that front.
For now, Bayer finds itself caught between two opposing forces: a near-term victory in defusing a conflict with its farming customers, and a longer-term threat from Washington's escalating trade war on pharmaceuticals. The stock's strong year-to-date rally suggests the market has been willing to look past these headwinds, but the August earnings report will test whether that optimism is justified.
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