Trump Plans Up to 250% Tariffs on Imported Pharmaceuticals

President Donald Trump has announced plans to impose tariffs on imported pharmaceuticals, starting with a small tariff that could escalate to 150% within 18 months and ultimately reach 250%, with the goal of encouraging domestic pharmaceutical manufacturing. Experts across the political spectrum have criticized this approach, warning that tariffs will increase drug prices, particularly affecting generic medications that heavily rely on imported ingredients and finished products. Studies suggest a 25% tariff could increase U.S. drug spending by $51 billion annually, and the proposed higher tariffs would have an even greater financial impact, likely passed on to patients and insurers. The domestic pharmaceutical manufacturing capacity is currently limited, with only 12% of active pharmaceutical ingredients produced in the U.S., making a rapid reshoring of production challenging and costly. Additionally, the tariffs have raised concerns about destabilizing the generic drug market and curtailing research and development efforts. While Trump has also imposed tariffs on Indian imports related to geopolitical disputes, the pharmaceutical tariffs specifically target imports from countries including Australia, reflecting his broader trade and manufacturing agenda.