Trump threatens to impose 200% tariffs on pharmaceuticals

President Donald Trump threatened tariffs of up to 200% on pharmaceuticals imported into the United States — but added that the levies wouldn’t likely be imposed for a year or more.

“They’re going to be tariffs at very high rate, like 200%,” Trump said during a Cabinet meeting on Tuesday. However, he indicated there would be a delay before the tariffs are implemented.

“We’ll give them a certain period of time to get their act together,” he said, suggesting a timeline of “about a year, year-and-a-half.”

Commerce Secretary Howard Lutnick told CNBC that more details will be released at the end of the month.

“With pharmaceuticals and semiconductors, those studies are being completed at the end of the month, and so the president will then set his policies then, and I’m going to let him wait to decide how he’s going to do it,” Lutnick said.

The proposed tariffs mark Trump’s most direct comments on pharmaceutical imports since April, when his administration launched a Section 232 investigation into the national security implications of drug imports.

That legal provision allows the Commerce Department to recommend trade measures based on import-related security concerns.

Trump has previously threatened high tariffs before reversing course, and it remains uncertain whether the proposed 200% rate will ultimately be enacted.

Pharmaceutical stocks were largely unchanged following the announcement.

In a note Tuesday, Leerink Partners analyst David Risinger called the announcement “positive for the industry” due to the delay in implementation and the uncertainty surrounding follow-through.

The pharmaceutical industry has warned that tariffs could increase drug costs, reduce investment, and disrupt the supply chain.

“Every dollar spent on tariffs is a dollar that cannot be invested in American manufacturing or the development of future treatments and cures for patients,” Alex Schriver, senior vice president of public affairs for PhRMA, told CNBC.

“The industry shares President Trump’s goal of revitalizing American manufacturing and has recently announced hundreds of billions of dollars in US investment, but placing tariffs on medicines would be counterproductive to these efforts,” Schriver continued.

“Medicines have historically been exempt from tariffs because they can increase costs and lead to shortages.”

Trump has argued that tariffs will encourage drugmakers to move manufacturing back to the US, noting that companies like Eli Lilly, Johnson & Johnson and AbbVie have already increased domestic investment following decades of industry offshoring.

The Trump administration is set to impose some of the highest tariffs in modern history on a wide range of trading partners starting Aug. 1 — unless new trade agreements are reached. The measures are already raising consumer prices and creating global economic uncertainty.

Trump announced that at least seven countries would receive new tariff notifications on Wednesday, with more to follow.

Earlier this week, 14 countries—including Japan, South Korea, Malaysia, Bangladesh and others received letters warning of new tariffs if they do not reach trade deals with the US by the new Aug. 1 deadline. Trump has stated there will be no further extensions to this date