Moderna, Inc. (MRNA) saw its stock plummet 5.30% in after-hours trading on Wednesday, following U.S. President Donald Trump's announcement of reciprocal tariffs that could significantly impact the pharmaceutical industry. The biotechnology company, known for its mRNA technology and COVID-19 vaccine, was among several major drugmakers affected by the news.

According to reports, President Trump unveiled plans for reciprocal tariffs on pharmaceutical imports, targeting major drug trading partners. The proposed tariffs include rates of 20% on the European Union, 26% on India, and 34% on China. While the White House clarified that pharmaceuticals were exempt from Wednesday's immediate tariffs, Trump's intention to implement sector-specific tariffs for pharmaceuticals in the future has sparked concern among investors and industry players alike.

The announcement had a ripple effect across the pharmaceutical and biotech sectors. Other major drugmakers also experienced declines in extended trading, with Johnson & Johnson down 0.6%, Eli Lilly falling 2.4%, Bristol Myers Squibb dropping 0.7%, and Regeneron declining 2%. The broader impact was reflected in the SPDR S&P Biotech ETF, which fell 4%, indicating widespread concern about the potential consequences of these tariffs on the industry's profitability and global competitiveness. This development comes at a time when the pharmaceutical industry is already facing challenges, including potential regulatory changes and increased scrutiny.