President Trump plans to levy a stepwise series of pharmaceutical tariffs that could reach 150% within a year and a half, then rise to 250%, he said in a wide-ranging interview on CNBC Tuesday.
It’s the highest tariff rate the president has threatened the industry with to date while he also presses major manufacturers to commit to a “most-favored nation” pricing policy.
Trump previously threatened tariffs of up to 200%.
“On pharmaceuticals, we’ll be putting an initially small tariff,” Trump told CNBC.
“But within one year, one-and-a-half years maximum, it’s going to go to 150%, and then it’s going to go to 250% because we want pharmaceuticals made in our country,” he said.
An announcement is planned for as soon as this week, he said.
A number of drugmakers, including Eli Lilly, AstraZeneca, Johnson & Johnson and Roche, have made commitments to build up more U.S. manufacturing capability. But experts say it can take years to build new plants and shift product lines.
A PhRMA spokesperson wouldn’t comment on Trump’s latest remarks, but the group has said tariffs on medicines would be “counterproductive.”
U.S. imports plunged again in June, largely due to a $9.6 billion decline in drug preparations, according to the new Census data.
It was the third consecutive month U.S.-bound pharma shipments fell. The dropoff began in April after there was a massive surge in March over tariff fears.
