Donald Trump said Tuesday he plans to impose tariffs of up to 250% on pharmaceutical imports — the steepest proposed rate to date — to push drug manufacturing back to the U.S.
Speaking on CNBC’s “Squawk Box,” Trump said the tariffs would start small but escalate: “In one year, one and a half years maximum, it’s going to go to 150 percent, and then it’s going to go to 250 percent.”
Though the White House previously walked back similar threats, pharmaceutical firms are now scrambling to respond. Experts warn such tariffs could trigger severe drug shortages and higher costs for patients, while relocating manufacturing would take years.
The administration has framed the plan as a national security issue, launching a review in April into the effects of pharmaceutical imports. Trump’s comments come as major drug companies ramp up domestic investments: AstraZeneca has pledged $50 billion, Johnson & Johnson $55 billion, and Eli Lilly $27 billion for new U.S. facilities.
While industry leaders caution against abrupt trade disruptions, Trump’s strategy has already begun reshaping the sector’s supply chain plans.
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