U.S. President Donald Trump is preparing to impose significant tariffs on the pharmaceutical industry. He claims this move is aimed at bringing drug manufacturing back to the United States, according to U.S. media outlet Politico.
Although the pharmaceutical sector initially escaped earlier tariff measures, Trump made it clear that this won’t last. Speaking at a dinner organized by the National Republican Congressional Committee on Tuesday (April 8), he announced that large-scale tariffs on imported pharmaceutical products would be implemented soon. He argued that such a move would compel businesses to shift their production operations from China and other countries back to the U.S., as most of their products are sold in the American market.
In his speech, Trump did not provide further details about the proposed pharmaceutical tariffs.
Over the past few decades, drug production in the U.S. has significantly declined. According to the Food and Drug Administration (FDA), most active pharmaceutical ingredients are currently manufactured in China and other foreign countries.
On April 2, Trump announced a general 10% tariff on imports into the United States. Additionally, he imposed retaliatory tariffs on foreign goods based on the tariffs those countries impose on U.S. products—affecting both allies and adversaries alike.
He also threatened to impose up to 104% tariffs on goods from the U.S.’s biggest competitor, China. In response, Beijing has vowed to see this tariff war through to the end.
Trump’s new tariff policy has stirred unease within various domestic circles. The Democrats are preparing to capitalize on public dissatisfaction caused by Trump’s aggressive stance, focusing their efforts on the upcoming midterm elections.
Meanwhile, even within the Republican Party, discomfort with Trump’s actions is growing. To reassure them and promote his economic agenda, Trump addressed the attendees, emphasizing that his ultimate goal is to restructure trade and bring investment and factories back to American soil.
Trump stated, “Many companies are now coming to set up factories in our country.”