U.S. President Donald Trump talks to members of the press at Lehigh Valley Worldwide Airport in Allentown, Pennsylvania, U.S., August 3, 2025.
Ken Cedeno | Reuters
President Donald Trump instructed CNBC’s “Squawk Field” on Tuesday that deliberate tariffs on prescription drugs imported into the U.S. may finally attain as much as 250%, the very best charge he has threatened to date.
He mentioned he’ll initially impose a “small tariff” on prescription drugs, however then in a 12 months to a 12 months and a half “most,” he’ll elevate that charge to 150% after which 250%.
The president has repeatedly threatened after which modified course on tariff proposals, so there isn’t any assure he’ll finally set pharmaceutical tariffs on the 250% charge. In early July, Trump had threatened 200% tariffs on prescription drugs.
The Trump administration in April initiated a so-called Part 232 investigation on pharmaceutical merchandise. That is a authorized authority that enables the secretary of Commerce to research the impression of imports on nationwide safety.
The tariffs are the president’s bid to incentivize drug firms to maneuver manufacturing operations to the U.S. at a time when home drug manufacturing has shrunk dramatically over the previous few a long time. During the last six months, firms like Eli Lilly and Johnson & Johnson have introduced recent U.S. investments to construct goodwill with the president.
“We would like prescription drugs made in our nation,” Trump instructed CNBC.
The deliberate levies would deal a blow to the pharmaceutical trade, which has warned that the tariffs may drive up prices, deter investments within the U.S. and disrupt the drug provide chain, placing sufferers in danger. Drugmakers are already navigating the fallout from Trump’s drug pricing insurance policies, which they argue threaten each their backside strains and their capability to spend money on analysis and growth.
That features Trump’s government order in Could that revives a controversial plan, the “most favored nation” coverage, that goals to slash drug prices by tying the costs of some medicines within the U.S. to the considerably decrease ones overseas.
On Tuesday, Trump instructed CNBC that he “invoked” the “most favored nations” coverage and that it’ll have a “great impression on the value of drugs.” However Trump has not formally applied any modifications from the chief order.
Trump final week despatched letters to 17 drugmakers calling on them to decide to steps to decrease U.S. drug costs by Sept. 29. That features agreeing to offer their full portfolio of present medicines on the lowest value provided in different developed nations to each single Medicaid affected person, amongst different steps.
Some pharmaceutical firms have mentioned they’re reviewing the letters.
