Thu Apr 10 05:51:59 UTC 2025: ## Trump Threatens Steep Tariffs on Imported Pharmaceuticals

**London, April 10, 2025** – President Donald Trump has reiterated his intention to impose significant tariffs, potentially as high as 25%, on imported pharmaceutical products. While initially spared from previous trade disputes, the President’s latest threat follows recent tariffs on Chinese raw materials used in drug manufacturing and repeated criticism of European drug production.

Trump’s announcement comes on the heels of his April 2nd executive order targeting various sectors including pharmaceuticals under Section 232 of the 1962 U.S. Trade Act. This order initiated a 270-day investigation into the impact of imports on U.S. national security. Despite this, Trump declared on April 8th that a decision on pharmaceutical tariffs would be imminent, separate from the Section 232 investigation. He added to the uncertainty by announcing temporary tariff reductions on imports from many countries on Wednesday.

The President’s rationale centers on reducing U.S. reliance on foreign drug manufacturers, increasing tax revenue, and addressing what he deems unfair pricing compared to other wealthy nations. He specifically criticized U.S. pharmaceutical companies for registering intellectual property in Ireland to benefit from lower corporate tax rates and for the high prices of brand-name drugs in the U.S. market compared to Europe.

The pharmaceutical industry has lobbied for a phased implementation of tariffs to allow time for shifting manufacturing to the U.S. However, the trade group PhRMA highlights the substantial costs and time (up to $2 billion and 10 years) associated with building new production facilities. The industry warns that immediate tariffs could lead to shortages of generic drugs like antibiotics, which are largely manufactured in China and India, while also hindering research and development. Several drugmakers have already started increasing U.S. manufacturing investments and stockpiling medicine in anticipation.

The threat of tariffs has sent shockwaves through the market, with pharmaceutical stocks plummeting. The impact of Trump’s decision remains uncertain, but it is likely to have significant consequences for both the U.S. healthcare system and the global pharmaceutical industry.

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