Donald Trump plans escalating pharma tariffs, starting 'small' and reaching 250%

In April, the Trump administration launched a Section 232 investigation into pharmaceutical imports—a process that empowers the Commerce Secretary to assess whether certain imports pose a risk to national security.

Amid the ongoing tariff tussle with major economies, President Donald Trump on Tuesday told CNBC’s “Squawk Box” that he plans steep tariffs on pharmaceuticals. In a telephonic interview, Trump said that the drugs imported into the United States could eventually face tariffs as high as 250% — the highest rate he has proposed so far.

He stated that the initial move would be to implement a “small tariff” on imported drugs, but within a year to 18 months “at the most,” that rate would increase first to 150%, then to 250%.

Trump has frequently made tariff threats only to later reverse or modify them, so it’s uncertain whether the pharmaceutical tariffs will ultimately reach the 250% level. Earlier in July, he had floated the idea of 200% tariffs on imported drugs.

In April, the Trump administration launched a Section 232 investigation into pharmaceutical imports—a process that empowers the Commerce Secretary to assess whether certain imports pose a risk to national security.

The proposed tariffs are part of the president’s effort to encourage drug manufacturers to shift production to the U.S., amid a long-term decline in domestic pharmaceutical manufacturing. In recent months, companies like Eli Lilly and Johnson & Johnson have announced new investments in U.S. facilities, seemingly to build favor with the administration.

“We want pharmaceuticals made in our country,” Trump said in his CNBC interview.

However, the proposed tariffs could severely impact the pharmaceutical industry, which has cautioned that such measures may increase drug prices, discourage domestic investments, and disrupt the supply chain—potentially endangering patient access to medicines. Drugmakers are also grappling with the effects of Trump’s drug pricing initiatives, which they argue threaten profitability and future investment in research and development.