Trump Announces Upcoming Major Tariff on Pharmaceutical Imports

The United States president Donald Trump announced that the U.S will shortly introduce a "major" tariff on pharmaceutical imports. “We are going to be announcing very shortly a major tariff on pharmaceuticals,” Trump said Tuesday at a fundraising gala for House Republicans, without providing details on the planned levy.

“Once we do that, they’re going to come rushing back into our country, because we’re the big market,” Trump said. “The advantage we have over everybody is that we’re the big market.”A lack of domestic pharmaceutical production has long been bemoaned by Trump, and tariffs have been repeatedly promised by him to bring more capacity into the country. In addition to imposing 25% sectoral tariffs on steel, aluminum, and autos, Trump has started the process of imposing them on copper. Although the exact timetable and specifics are unknown, his government has separately promised new sectoral charges on semiconductor chips and lumber in addition to prescription medications.

If new tariffs on pharma imports are announced by Trump, India, one of the largest suppliers of medicines to the U.S., could be significantly affected. In 2024, India’s healthcare sector and  the value of India’s pharmaceutical exports was USD 12.72 billion, making it the country’s largest industrial export sector in global healthcare. Indian pharmaceutical companies play a crucial role in the U.S. healthcare system.