Trump tariff plan: US Prez to announce levy on pharma imports soon

The pharmaceutical sector was previously spared by the Trump administration in the last round of tariffs that were announced on April 2

US President Donald Trump said on Wednesday (IST) that the US will soon announce major tariffs on pharmaceutical imports, Reuters reported.  

 

Speaking at an event at the National Republican Congressional Committee, Trump said that these tariffs will incentivise the drug companies to move their operations to the United States. “We're gonna tariff our pharmaceuticals ... we're going to be announcing very shortly a major tariff on pharmaceuticals," he told the gathering. 

Trump: "We're gonna tariff our pharmaceuticals ... we're going to be announcing very shortly a major tariff on pharmaceuticals." pic.twitter.com/AzewiYDoHC

— Aaron Rupar (@atrupar) April 9, 2025

 

Notably, his remarks come at a time when the previously announced "discounted" reciprocal tariffs are set to come into effect starting April 9. On April 2, Trump announced the first set of reciprocal tariffs on over 180 countries, including a 26 per cent levy on imports from India. The tariffs, which covered nearly all US imports, spared some key sectors such as pharmaceuticals.

 

 

While Trump did not specify which countries are likely to be impacted by this new move, India and China, the two major suppliers of generic drugs to the US, are likely to take a hit.

 

The US President also added that once they impose these tariffs, the companies will come rushing back to the US, owing to its large market share, further noting that once these tariffs are announced, the drug companies will leave other places, including China.

 

Earlier, on Tuesday (IST), Trump imposed additional 50 per cent tariffs on China, after it was asked to reduce the retaliatory tariff of 34 per cent. After the new additional tariffs, China's total tariffs are at 104 per cent.

 

Trump's stance on pharma tariffs

 

Trump has long advocated for increasing domestic pharmaceutical production in the country and has also promised tariffs on several occasions to bring more capacity to the country. According to a Bloomberg report, his administration has indicated that it will use the powers under the so-called Section 232 to enact these levies.

 

On March 24, Trump claimed they would announce tariffs on pharmaceutical imports at some time. However, he did not specify a timeline.

 

India's pharma exports to the US

 

According to an Economic Times report, India's pharmaceutical exports in 2024 were valued at ₹12.72 billion, making it the country's largest export sector. The Indian pharma companies have been playing a crucial role in the US healthcare system. Drugs from the Indian pharmaceutical companies saved the American healthcare system $219 billion in 2022 and $1.3 trillion between 2013 and 2022.