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Trump plans a hefty tax on imported drugs, risking higher prices and shortages
The tariffs aim to reduce a $150 billion U.S. pharmaceutical trade deficit and encourage domestic drug manufacturing, but could cause shortages and higher prices, experts warn.
- President Donald Trump plans hefty import taxes on pharmaceuticals, threatening duties up to 200% under Section 232 of the Trade Expansion Act of 1962 to boost U.S. drug manufacturing.
- The move stems from decades of offshoring to China and India, leaving supply chains exposed and a nearly $150 billion U.S. trade deficit last year, prompting tariffs to boost domestic production.
- Analysts note many medicines rely on foreign ingredients and drugmakers hold about six months of inventory, delaying tariff impacts until 2027 or 2028, Leerink Partners analyst David Risinger said earlier this year.
- Industry warnings include some generic drug manufacturers may leave the U.S. market to avoid tariffs, while brand-name drug companies like Roche and Johnson & Johnson plan domestic investments and watch for exemptions as President Donald Trump threatens duties of 200%.
- Analysts expect a tariff below the threatening duties of up to 200% as building pharmaceutical factories in the U.S. is costly and slow; Maytee Pereira calls the plan `shock and awe`, noting imported ingredients remain taxed.
67 Articles
67 Articles
Trump plans a hefty tax on imported drugs - American Press
President Donald Trump has plastered tariffs on products from almost every country on earth. He’s targeted specific imports including autos, steel and aluminum. But he isn’t done yet. Trump has promised to impose hefty import taxes on pharmaceuticals, a category of products he’s largely spared in his trade war. For decades, in fact, imported medicine has mostly been allowed to enter the United States duty free. That’s starting to change. U.S. an…
President Donald Trump has imposed tariffs on products from almost every country in the world. He has targeted specific imports, such as cars, steel and aluminum. But it is not over yet. Trump has promised to impose heavy taxes on the import of pharmaceutical products, a category of products that has largely been saved from his trade war. Indeed, for decades, most imported drugs have been able to enter the United States duty-free. That is beginn…
Trump plans a hefty tax on imported drugs, risking higher prices and shortages (World)
President Donald Trump has plastered tariffs on products from almost every country on earth. He's targeted specific imports including autos, steel and aluminum. But he isn't done yet. Trump has promised to impose hefty import taxes on pharmaceuticals, a category of products he's largely spared in hi...
Associated Press News
Trump plans a hefty tax on imported drugs, risking higher prices and shortages
President Donald Trump has plastered taxes on products from almost every country on earth. He’s targeted specific imports, too. But he isn’t done yet.
Trump plans hefty tax on imported drugs, risking higher prices and shortages
President Donald Trump has plastered taxes on products from almost every country on earth. He’s targeted specific imports, too. But he isn’t done yet. Trump has promised another round of hefty import taxes on a category of products he’s so…
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