Bayer invests $2.2 billion in Ohio, yielding to Trump's tariffsBayer AGXETR_DLY:BAYNActivTradesBayer invests $2.2 billion in Ohio, yielding to Trump's tariff pressure By Ion Jauregui - Analyst at ActivTrades Bayer (ETR:BAYN) announced a $2.2 billion investment to build a new pharmaceutical manufacturing complex in New Albany, Ohio, which will generate around 600 permanent jobs and 1,500 temporary jobs during construction. The active substances plant will come into operation in 2031, and the finished product plant in 2034. U.S. President Donald Trump attributed the decision to his pharmaceutical tariff policy, which according to the White House has generated more than $600 billion in new investment in the sector in the country, a figure that has not been independently verified. The United States already accounts for 35% of the revenue of Bayer's pharmaceutical division, up from 20% in 2018, and the company states it has devoted more than $7 billion to pharmaceutical research, development and production on U.S. soil over the past five years. The announcement adds to those of other European multinationals that have relocated production and investment to the United States in the face of the tariff threat, while maintaining cost and workforce cuts in their home markets. Fundamental analysis The investment in Ohio should be read as a bet on the future growth of the pharmaceutical business, Bayer's least battered segment, rather than as a sign of immediate financial strength. The group has posted losses for three consecutive years, with a result of -€3.68 per share in 2025, weighed down by glyphosate litigation stemming from the Monsanto acquisition, which has already cost the company more than $10 billion, with tens of thousands of lawsuits still open in the United States. Management has warned that 2026 free cash flow could again be negative due to the payments expected for legal settlements, while the company appeals to the U.S. Supreme Court to limit the future impact of these proceedings. Net debt to EBITDA stands at an elevated level, close to 9.5 times, which has led the company to maintain a symbolic dividend of €0.11 per share as part of its deleveraging plan. Technical analysis Bayer shares were trading this morning around €48.97, after a week marked by the appearance of a three black crows pattern that pushed the price back below the zone from which the rally toward the €53.83 highs began. The price broke below the 50- and 100-session moving averages. The RSI is in excessive oversold territory, at 32.70%, and the MACD tells a story that rhymes with the above. Extreme oversold levels are usually associated with an exhaustion of selling momentum that could open the door to a short-term technical rebound. As long as the price fails to recover the 50- and 100-session moving averages, the bias will remain corrective, with €53.83 as the resistance reference. Outlook With the glyphosate litigation still pending resolution at the Supreme Court, I expect the stock to remain exposed to legal and political headlines rather than to its own operating fundamentals. The Ohio investment reinforces the long-term growth narrative in the U.S., but it does not change the short-term equation marked by technical oversold conditions and the pending legal risk. ******************************************************************************************* The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication. All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.