Trump Threatens 200% Drug Tariffs, Risks Higher Costs And Supply Shortages

Trump is threatening to impose tariffs of up to 200% on imported pharmaceuticals, according to the Associated Press. A new U.S.-EU trade deal imposes a 15% tariff on some European pharmaceuticals, while Trump is threatening tariffs of up to 200% on drugs from other countries. PwC’s Maytee Pereira described Trump’s plan for drugmakers as “shock and awe,” noting the industry could face tariffs rising from zero to as high as 200%. Trump pledged to lower drug costs, but his proposed pharmaceutical tariffs could raise prices, disrupt supply chains, push out generics, and cause shortages. Economists say consumers, especially lower-income households and the elderly, would face higher prices and potential shortages. Trump has delayed implementation by up to 18 months, giving drugmakers time to stockpile or shift production to the U.S.