Google is trying to figure out its response to tariffs, cloud chief says

Google is trying to determine its response to tariffs that will increase the cost of goods imported to the U.S., the search engine company’s cloud CEO, Thomas Kurian, said in an interview with CNBC’s Deirdre Bosa on Tuesday.

“The tariff side is so fluid,” he said. “I don’t want to comment on it, because it’s changing by the minute. We’re working similar to every other company to look at what we should do.”

Google has taken steps to lower the cost of sending requests to its artificial intelligence models, Kurian said. In addition to renting out Nvidia graphics processing units, the company also offers its own Tensor Processing Units.

“We co-engineer the model and the infrastructure,” he said. “We’re able to do an exceptional job with quality and cost and latency, and the customers who use it love it.”

Pharmaceutical stocks are reeling after Trump reiterated that he is planning to impose “major” tariffs on drug imports with the stated goal of bringing more manufacturing back to the U.S.

Amgen and Merck shares were down about 2%, while AbbVie shed 3%.

Trump’s remarks at an event in Washington did not provide many details on how these levies would be structured, but Bank of America analyst Tim Anderson speculates Trump will use a “Section 232 Investigation.”

If this is true, Anderson said it could take some time to execute, based on past examples. With this strategy, an investigation is launched to determine if importing specific goods is a threat to national security. If it is, then action can be taken.

Medical products were excluded from the “reciprocal” tariffs announced April 2. This was in keeping with long-standing trade agreements that have exempted drugs from tariffs.