U.S. President Donald Trump has unveiled ambitious plans to impose escalating tariffs on foreign-made pharmaceuticals, with rates potentially reaching 250% – the highest proposed during his administration. In a CNBC interview, Trump framed the tariffs as a strategy to boost domestic production, stating: "We will be putting an initially small tariff… but it is going to go to 250 percent because we want pharmaceuticals made in our country."
The announcement comes amid growing scrutiny of global pharmaceutical supply chains, particularly after pandemic-era disruptions. While Trump did not specify the initial tariff rate or implementation timeline, White House spokesperson Kush Desai later cautioned that details remain fluid until an official announcement.
In a related development, Trump revealed plans to introduce new tariffs on semiconductors and chips as early as next week, though specifics were withheld. The dual focus on healthcare and technology sectors signals a potential reshaping of U.S. trade priorities that could ripple through Asian manufacturing hubs.
Market analysts suggest the proposed pharmaceutical tariffs – if implemented – might particularly impact India's $50 billion pharmaceutical export industry and European manufacturers. However, the lack of concrete timelines has left businesses and trade partners in cautious observation mode.
