Washington: US President Donald Trump announced a dramatic escalation in tariffs on pharmaceutical imports, aiming to promote domestic drug manufacturing. Speaking in a recent interview, Trump stated that the US would initially impose a “small tariff” on pharmaceutical imports, with plans to raise the rate to 150% within 18 months and ultimately to 250%. “In one year, one and a half years maximum, it’s going to go to 150% and then it’s going to go to 250% because we want pharmaceuticals made in our country,” Trump said in a CNBC interview.
The president did not specify the initial tariff rate but reiterated that the move is intended to encourage the production of pharmaceuticals within the United States. Trump also revealed plans to announce new tariffs on imported semiconductors and chips in the coming week, though he did not provide details on the proposed rates.
The US government is currently conducting a national security review of the pharmaceutical sector, and industry players are bracing for the potential impact of steep sector-specific tariffs. Meanwhile, the existing trade framework between the United States and the European Union keeps tariffs on pharmaceuticals and semiconductors at zero, but if the US raises tariffs following the import investigation, the cap would be set at 15% under the agreement.
Industry reactions have been mixed, with some major drug makers, such as AstraZeneca, already increasing investments to expand US manufacturing capacity. However, key lobbying groups like PhRMA have yet to issue a formal response, underlining uncertainty in the sector.
Trump’s tariff proposals have triggered international responses, with several countries, including Switzerland, entering negotiations in hopes of averting punitive duties on their pharma exports to the US market.
